According to the Wall Street Journal, Microsoft CEO Satya Nadella (Satya Nadella) said today that he believes the search engine deal between Apple and Google has made it impossible for other search engines such as Bing to compete with Google.
In testimony provided during the antitrust trial of Google v. the U.S. Department of Justice, Nadella explained that as Google becomes the default search engine for Safari on all Apple devices, people are used to using it.
"you get up in the morning, brush your teeth and search on Google," Nadella said. "as habits form, the only way to change is to change the default settings." Mr Nadella went on to say that Google could use its about 90 per cent market share to improve search results and further consolidate its monopoly. He said that there are options in the search engine market is "fake."
Microsoft has been trying to grab Google's market share by adding OpenAI chat robot technology to Bing, but Nadella said it was unclear how far AI could reshape the existing market because Google's distribution advantage would not disappear. "I'm very worried about it," he said. "although I am keen on AI to have a new breakthrough, this vicious circle may also intensify."
Last week, iTunes CEO Eddy Cue testified at the trial and explained that Apple chose Google as the default search engine on its device because the company "always thought it was the best." Google does pay Apple billions of dollars a year to maintain its status as the default search engine, while Eddy Cue claims there is no effective alternative.
Microsoft approached Apple as early as 2020 and offered Bing as a potential acquisition target, but there was no progress in negotiations between Microsoft executives and Eddy Cue, IT House reported earlier, citing Bloomberg.
Notably, Bloomberg's Mark Gurman says Apple is considering creating its own search engine. Such a solution would provide better privacy and deeper integration with Siri and Spotlight, and Apple has developed search tools for apps such as App Store and Apple TV.
John Giannandrea, Apple's director of AI, leads a search team within Apple that has created the next generation of search engines for Apple apps, Mark Gurman said. The search technology, codenamed "Pegasus", can provide more accurate results.
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