Apple senior VP of services Eddy Cue says Apple will not create a search engine to compete with Google as it “would cost billions of dollars and take many years,” as recorded in a motion to intervene filed with the Department of Justice (DOJ) on Monday. The purpose of the motion is to participate in the penalty phase of the DOJ’s antitrust case against Google, where as much as $20 billion could be at stake for Apple in its ongoing default search engine deal with Google.
The DOJ and Google have disagreed on how to address Google’s monopoly on general-purpose search engines, but both parties have tentatively accepted cutting or renegotiating its Apple partnership. Last week Google proposed a three-year ban on strict long-term exclusivity deals involving any ”proprietary Apple feature or functionality.”
Cue warns that removing the search deal would ultimately hurt Apple and benefit Google:
If this Court prohibits Google from sharing revenue for search distribution, Apple would have two unacceptable choices. It could still let users in the United States choose Google as a search engine for Safari, but Apple could not receive any share of the resulting revenue, so Google would obtain valuable access to Apple’s users at no cost. Or Apple could remove Google Search as a choice on Safari. But because customers prefer Google, removing it as an option would harm both Apple and its customers.
As reported by MacRumors, Cue said Apple making its own general search engine would be “economically risky” and suggests AI chatbots are the next big evolution to search. Apple also noted in the filing that it would have to adopt targeted advertising as a core service to make search viable, which would fit badly with its privacy-focused business model.
Cue also says that “only Apple can speak to what kinds of future collaborations can best serve its users” and warns that the DOJ’s proposed remedies would “hamstring” Apple from fulfilling its customers’ needs.
