The Justice Department is reportedly investigating Google, with a particular focus on its relationship with Apple. The probe centers around Google’s significant payments to Apple, estimated at over $20 billion annually, to ensure Google remains the default search engine on iPhones (via 9To5Mac). The Justice Department argues that this arrangement stifles competition in the search engine market. Although Apple isn’t directly named in the lawsuit, Apple executives, including Eddy Cue, have provided testimonies.
A recent report by The Information reveals Google’s strategic efforts to reduce its dependency on Apple’s Safari browser in light of the antitrust case. Over the years, Google has encouraged iPhone users to switch to its own Google and Chrome apps for search. While there has been some progress, with searches through these apps rising from 25% five years ago to the low 30% range, this growth plateaued in the latter half of last year. This percentage remains well below Google’s target of 50% by 2030.
The billions paid to Apple are part of a revenue-sharing agreement, where Apple receives a share of the advertising revenue generated from Google searches conducted in Safari. By promoting its own apps, Google aims to reduce these payments and lessen its regulatory risks.
However, convincing users to switch from Safari, the default browser on Apple devices, has been challenging. To lead this initiative, Google recently hired Robby Stein, a former executive at Instagram and Yahoo. Stein’s task includes using generative AI to boost the appeal of Google’s apps, according to sources familiar with the matter. Google executives even considered restricting its AI Overviews feature, which provides AI-generated search responses, to its own apps, thereby excluding Safari users. This idea was eventually abandoned.
. The Justice Department argues that this arrangement stifles competition in the search engine market. Although Apple isn't directly named in the lawsuit, Apple executives, including Eddy Cue, have provided testimonies.){kind=link}