In a recent antitrust hearing against Google, Microsoft CEO Satya Nadella revealed the company’s willingness to rebrand its Bing search engine to win a coveted deal with Apple. The objective was to replace Google as the default search engine on Apple devices.
The High Stakes of Being Apple’s Go-To Search Engine
Nadella emphasized the transformative impact of becoming Apple’s primary search engine, a role currently held by Google. He said, “Being chosen by Apple is a game-changer. They have the power to crown kings in the industry.” Between 2013 and 2017, Microsoft did manage to replace Google for certain search functionalities on Apple devices, like Siri and Spotlight. However, Google remained the default for Apple’s Safari browser and eventually regained its lost ground.
The Backstory of the Bing Rebranding Proposal
During 2018 discussions with Apple, Microsoft proposed that Bing could power Safari’s search results under a different name. Since taking the helm in 2014, Nadella has annually attempted to dethrone Google as Apple’s default search engine. He even suggested that Apple used Microsoft’s offers to negotiate better terms with Google.
Why Apple Sticks with Google
Apple’s services head, Eddy Cue, has defended the company’s partnership with Google, citing superior search capabilities as the primary reason. The deal brings in an estimated $8 billion per year for Apple, structured as a revenue-sharing agreement.
A Brief History of Apple and Google’s Search Partnership
Apple and Google’s search engine collaboration dates back to 2002, even before Apple launched its first Mac web browser. Over the years, the partnership has extended to new Apple devices, most notably the iPhone. As of 2020, Apple was raking in between $4 billion and $7 billion annually from this arrangement, according to the Department of Justice.
The Financial Incentive Behind Apple’s Decision
Insiders suggest that the lucrative Google deal was a significant factor in Apple’s decision to decline Microsoft’s offer to purchase Bing around 2020. Despite various discussions over the years, Apple has consistently chosen to stick with Google as its preferred search engine.
The Current Legal Landscape
Both Apple and Microsoft are now key players in the government’s antitrust case against Google. The Justice Department argues that Google’s deal with Apple is proof of its monopolistic behavior in the search market.
By offering to rebrand Bing, Microsoft showed its eagerness to disrupt Google’s dominance. However, the tech giant has struggled to gain significant market share since Bing’s launch in 2009, capturing less than 10% of the search market to date.