Eddy Cue, senior vice president of services for Apple, is due to testify on Tuesday in a federal court trial, in which the United States Department of Justice is accusing Google of using licensing contracts to build a monopoly on Internet search. Sources informed with Cue's expected testimony say he will explain that Apple opted for Google's search engine as the iPhone's default because it represented the most quality product. Moreover, Cue is to testify that there is no need to develop a fresh Apple search engine as long as Google is around.
Apple Senior Vice President of Services Eddy Cue is expected to testify throughout Tuesday in a U.S. federal court, where the Department of Justice is accusing Google of using licensing agreements to monopolize online search. The main focus is a deal in which Google pays Apple billions of dollars to be the default search engine on the iPhone's browser and other settings; Bernstein estimates this figure could reach up to $19 billion this year. As the negotiator of the deal from Apple's side, Cue is expected to attest that Apple opted for Google's search engine due to it being the best product. Moreover, Cue plans to say that Apple has no reason to come up with their own search engine since Google has already been established, according to a person informed on Cue's anticipated remarks. Furthermore, Cue will also highlight that Apple has revenue-sharing contracts with competing search engines Yahoo, Microsoft Bing, DuckDuckGo and Ecosia, as well as that iPhone users can change their default search engine, as reported by a person with knowledge of Cue's planned testimony. The testimony should provide an in-depth look into one of the most significant deals in the tech sector, which for the past decade has been kept mostly confidential. The money Google pays Apple for default placement is one of its biggest expenditures, and the advertising revenue Apple collects from Google is a considerable part of its returns. Apple categorizes its payments from Google as advertising revenue, which formed part of its services business's $78.1 billion in sales for Apple's fiscal year 2022. In 2018, when inquired about why they use Google as the iPhone's default search engine, Apple CEO Tim Cook answered, "I think their search engine is the best."
At last week's Giannandrea testimony, the only part that was not under seal was 15 minutes, which revealed a new search engine setting on the most recent iPhone operating system. The D.C. District Court judge, Amit Mehta, has expressed his desire to be conservative regarding how many documents are made available to the public. In response to this, the DOJ removed their page with the trial documents and exhibits on their website, as requested by Google. The 10-week trial marks the biggest technology monopoly trial since the DOJ's lawsuit against Microsoft more than two decades ago. The allegation is that Google has allegedly breached anti-monopoly law by striking exclusive agreements with mobile phone makers and browser companies, preventing any competition for its own search engine. While Google argues that these agreements are simply regular business practices, the DOJ claims that the 89% of the market share held by Google's search engine constitutes a monopoly. The DOJ's Kenneth Dintzer declared in the opening statements that this case is about the future of the internet and the possibility of Google's search engine facing competition. Following the four-week DOJ case, the coalition of attorneys general will present their case, followed by Google. It is also anticipated that Google's CEO, Sundar Pichai, will take the stand.
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