The crux of the state’s antitrust case against Alphabet (GOOGLE) – Get a free report and its Google search engine is based on the testimony of an executive of one of its largest collaborators and rivals at Apple (AAPL) – Get a free report.
Google handles more than 90% of search queries worldwide. according to Oberlo, and it’s worth keeping it that way.
Related: The cost Google pays to maintain its dominance focuses on the Justice Department trial
The technology company, which started as just a search engine but has since morphed into much more, pays about $10 billion annually to Apple and other smartphone makers to maintain its place as the top search engine. most dominant in the world, according to the Department of Justice. antitrust lawsuit against the company.
On Tuesday, September 26, Eddy Cue, Apple’s senior vice president of services, will testify all day in federal court. Sign supposedly negotiated the agreement between Google and Apple to create Apple’s default search engine on iPhones and other devices, and is expected to defend the agreement in court.
The state intends to argue that Google uses its deep pockets to convince big tech companies like Apple and Samsung to keep its search engine as the default, in turn squeezing out smaller competitors like DuckDuckGo and Dogpile.
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But Cue is expected to defend the deal in court, saying he “believes Google is the best search engine and that users still have the option to change their default search engine. He will also say that Apple does not make its own search engine.” search because Google’s is already there and they consider it the best,” according to CNBC.
But CNBC reporter Steve Kovach also points out that Cue has an incentive to testify this way because the billions in annual revenue Apple receives from Google for its default search position goes to the Apple Services segment of which Cue is boss.
According to Bernstein analysts, Google will pay Apple around $19 billion this year to be the default search engine on Apple products.
Watch Kovach’s full comments in the video below.
.@AppleEddy Cue will testify today in the government’s antitrust case against $GOOGL. @CNBCSteve Kovach joins in with the latest: pic.twitter.com/da4lKncvDv
– Squawk Box (@SquawkCNBC) September 26, 2023
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