Eddy Cue, senior vp of providers at Apple Inc.
David Paul Morris | Bloomberg | Getty Pictures
Apple senior vp of providers Eddy Cue is anticipated to testify all day Tuesday in federal courtroom the place the U.S. Division of Justice is accusing Google of utilizing licensing agreements to monopolize on-line search.
Underneath scrutiny is a deal through which Google pays Apple billions of {dollars} to be the default search engine on the iPhone’s browser and different settings. Google might pay Apple as a lot as $19 billion this yr, based on an estimate from Bernstein.
Cue, who negotiated the take care of Google from Apple’s aspect, is anticipated to testify that Apple picked the Google search engine as an iPhone default as a result of it was the perfect product. He is additionally anticipated to say that Apple would not see a cause to create a brand new Apple search engine as a result of Google already exists, based on an individual acquainted with Cue’s anticipated testimony.
Cue will even say that Apple has revenue-sharing agreements with competing search engines like google Yahoo, Microsoft Bing, DuckDuckGo and Ecosia, and that Apple customers can change their default search engines like google, based on an individual acquainted with Cue’s anticipated testimony.
The testimony might shed some mild on one of many highest-profile offers within the know-how trade, which has been shrouded in secrecy for the previous decade. The cash Google pays to Apple for default placement is one in all its greatest prices, and the promoting income Apple collects from Google is a serious a part of Apple’s income.
Apple experiences its funds from Google as promoting income, reported in its providers enterprise, which totaled $78.1 billion in gross sales in Apple’s fiscal 2022.
“I believe their search engine is the perfect,” Apple CEO Tim Prepare dinner stated when requested about utilizing Google because the iPhone’s default search engine in 2018.
Google on trial
A lot of Cue’s testimony and associated monetary paperwork might stay beneath seal, which implies they will not be launched to the general public.
Final week, Apple machine studying govt John Giannandrea testified. Earlier than Apple, he labored at Google on its search engine.
The D.C. District Courtroom choose, Amit Mehta, has stated he desires to be conservative about what number of paperwork are launched to the general public, and final week’s Giannandrea testimony was solely sealed aside from quarter-hour, the place Giannandrea revealed a brand new search engine setting on the newest iPhone working system.
The DOJ beforehand had a web page on its web site the place it could submit paperwork and reveals from the trial, and it was taken down final week on Google’s request.
The Google trial, anticipated to final 10 weeks, is the largest know-how monopoly trial for the reason that DOJ took on Microsoft greater than 20 years in the past. The DOJ alleges Google has violated anti-monopoly regulation by hanging unique agreements with cell phone makers for its Android working system and browser firms for default placement. The federal government alleges that the apply creates boundaries to entry for competing search engines like google.
“This case is about the way forward for the web and whether or not Google’s search engine will ever face significant competitors,” the DOJ’s lawyer, Kenneth Dintzer, informed the courtroom in opening statements. He alleged that Google has greater than 89% of the marketplace for common search.
Google stated earlier than the trial kicked off earlier this month that it sees licensing agreements as a normal enterprise apply that brings its merchandise to shoppers and creates a greater expertise for customers. Google additionally argues that buyers can simply change default search engines like google on Android and Apple telephones.
The DOJ is anticipated to current its case for about 4 weeks, then a coalition of attorneys common will current their case, adopted by Google. Google CEO Sundar Pichai can also be anticipated to testify, the DOJ stated.
CNBC’s Steve Kovach contributed to this story.
