In 2020, high-ranking executives from Microsoft and Apple engaged in discussions concerning the possible sale of Microsoft’s search engine, Bing. A recent report has shed light on these talks, revealing that they did not progress beyond the preliminary stages. This suggests that Apple’s top leadership, including Eddy Cue, who participated in the discussions, did not seriously pursue the idea of acquiring Bing.
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Testimonies presented during the ongoing FTC antitrust suit against Google indicate that Apple never seriously considered replacing Google as the default search engine on iPhones. Instead, Microsoft’s belief is that Apple has merely entertained the idea as a means to negotiate higher payments from Google to maintain its dominant position. Microsoft’s Mikhail Parakhin noted during the proceedings that “Apple is making more money on Bing existing than Bing does.”
Bloomberg’s recent report underscores the importance of the lucrative arrangement between Apple and Google, which has played a pivotal role in retaining the status quo. However, it is reported that Apple had reservations about Bing’s ability to compete with Google in terms of quality and capabilities. Eddy Cue’s testimony aligns with this perspective, as he stated that there was no valid alternative to Google at the time of the initial agreement, and no suitable alternative has emerged since.
Apple is estimated to generate over $20 billion annually through its agreement with Google, which designates Google as the default search engine on iOS and iPadOS devices. Despite some claims that switching the iPhone’s default search engine is a cumbersome process, it can be accomplished with a few simple settings adjustments. However, this highlights how infrequently most users deviate from the default settings.
It’s worth noting that Bing did have opportunities to gain traction, as Microsoft’s search engine was the default for Siri and Spotlight searches for several years, starting with iOS 7. Some observers interpreted this as a potential precursor to a larger shift, but ultimately, Safari continued to feature Google’s search results, preserving the familiar experience for customers. Although meetings took place around 2016 between Apple CEO Tim Cook and Microsoft CEO Satya Nadella regarding a potential new deal, no significant changes materialized from these discussions.
