Sep 28, 2023 06:00:00

A service executive says he had never thought about the possibility of Apple ending its contract with Google.

In connection with

Google's antitrust lawsuit , Eddie Cue, Apple's senior vice president of services, appeared as a witness on Google's side, commenting on Apple's continued adoption of Google Search as ``the best search.'' It was the engine, and there was no replacement,'' he testified.

Apple defends Google Search deal in court: 'There wasn't a valid alternative' - The Verge
https://www.theverge.com/2023/9/26/23891037/apple-eddy-cue-testimony-us-google

Apple's Eddy Cue defends default search contract with Google in trial

https://www.cnbc.com/2023/09/26/apples-eddy-cue-defends-default-search-contract-with-google-in-trial.html

Apple's Eddy Cue Explains Why Google is iPhone's Default Search Engine - MacRumors
https://www.macrumors.com/2023/09/26/apple-on-why-google-is-default-on-iphone/

Safari, the default browser used on Apple devices, has Google search set as the default search engine. This is based on an agreement between Google and Apple and has been in place since 2002.

The details of the contract between Google and Apple are of course top secret, but some parts have been revealed due to external factors. For example, in 2014, Google paid $1 billion (approximately 150 billion yen), which is 1% of its revenue from Android. This is clear from the court documents between Google and Oracle.

Apple revealed that it made more than 110 billion yen by adopting Google search on iOS - GIGAZINE

Three years later, analysts at the investment firm AllianceBernstein pointed out that the amount paid in 2017 tripled to $3 billion (about 450 billion yen).

Google is paying Apple more than 300 billion yen a year for search, which has tripled in three years, so why is it a win-win? -GIGAZINE

Furthermore, in this antitrust lawsuit, a Justice Department lawyer estimated that Google's payment amount in 2020 was '4 billion dollars (approximately 600 billion yen) to 7 billion dollars (approximately 1.5 trillion yen)' based on external materials. yen)'.

``Amount paid by Google to become the iPhone's default search engine'' is mentioned in antitrust lawsuit and Apple's lawyer protests - GIGAZINE

Mr. Cue said that he had discussions with Google's CEO Sundar Pichai when the contract was renegotiated in 2016. Since the payment terms at the time were ``a certain percentage of the sales share,'' Apple's goal was to ``increase the percentage of the share that they would pay.'' Google, on the other hand, aimed to maintain the status quo. In the end, the contract negotiations between the two companies were not settled as each other claimed, and the license fee was decided using a different undisclosed number.

When asked about the 2016 contract negotiations, ``Was there an option not to re-sign with Google?'' Mr. Cue answered, ``I had never thought about it.''

Mr. Cue said, ``It was in Google's best interest to close the deal, and it was in our interest as well.'' However, it was not just an economic issue, but ``Apple didn't have an alternative to Google Search in the first place.'' ” he said.

The Department of Justice pointed out, and Cue acknowledged, that search engine options other than Google were not offered when setting up the device, but Cue said the reason for this was that ``users want to start up their devices quickly.'' '' and explained that having multiple search engines you've never heard of will only lead to a poor user experience. Cue also explains, ``We choose the best search engine and then allow users to change it.''

In addition, when Apple and Google first signed their agreement, search engine options were limited, and the idea of being able to enter text other than a URL into a URL input field and search for it was seamlessly implemented, so Google Search explains that it will be adopted in Apple products.