Apple’s senior vice president of services, Eddy Cue, has revealed why the tech giant won’t build its search engine to rival Google. In a recent motion filed with the Department of Justice (DOJ) on December 18, Cue stated that creating a search engine would cost billions of dollars and take many years to develop. The motion is part of Apple’s effort to participate in the penalty phase of the DOJ’s antitrust case against Google. This case could significantly impact Apple’s lucrative deal with Google, which brings in as much as $20 billion annually.
The cost of breaking ties with Google
The DOJ’s case against Google centres around its dominance in general-purpose search engines, which the government claims stifles competition. One key point of contention is Google’s exclusive agreement to remain the default search engine on Apple’s Safari browser. The DOJ and Google have tentatively discussed changes to this arrangement, with Google proposing a three-year ban on long-term exclusivity deals involving proprietary Apple features.
Cue warns that scrapping the current search deal would leave Apple with two unfavourable options. Apple could allow users in the United States to continue selecting Google as their preferred search engine in Safari without receiving any revenue share from Google. This would mean Google can access Apple’s user base at no cost. Alternatively, Apple could remove Google Search from Safari altogether. However, since most customers prefer Google, this decision would harm Apple and its users.
Cue emphasised that removing Google’s revenue-sharing agreement would significantly disrupt Apple’s business model. He also noted that developing its search engine to replace Google is not realistic for Apple due to the high economic risks involved.
Search engine plans clash with Apple’s values
In his statements, Cue explained that building a search engine would require Apple to adopt targeted advertising as a key revenue source. Such a move would contradict Apple’s commitment to user privacy, a cornerstone of its business strategy. Apple has consistently positioned itself as a leader in protecting customer data and introducing targeted ads would undermine this principle.
Cue also suggested that the future of search lies in AI chatbots rather than traditional search engines, a direction Apple may find more appealing. However, he clarified that the DOJ’s proposed remedies to curb Google’s monopoly could backfire by limiting Apple’s ability to make decisions that benefit its users.
“Only Apple can speak to what future collaborations can best serve its users,” Cue argued. He added that the DOJ’s proposals could hinder Apple’s ability to meet customer needs effectively.
The case against Google, which has spotlighted Apple’s relationship with the search giant, underscores the complexities of navigating partnerships while maintaining business integrity and customer satisfaction.
