The News has been reporting that there has been an agreement signed between the two largest tech companies Apple and Google.
Google demanded that Apple should not get involved in the search engine business. Google also wants Apple to make it the default option in Safari.
What Strategy Did Apple Have Regarding the Search Engine?
Well, it has been a rumor for a very long time that Apple is going to launch its search engine. Apple has been slowly developing their search engine for a little while now but they’ve been stepping it up more recently.
Apple claimed that its users will have their privacy. They claimed that the data of their users is leakproof but upon refreshing the safari it takes users to google. Google is a platform that tracks every movement of its user.
That is the thing that leads Apple to take such a decision of coming out with their browser. But of course, Google did not seem to like that idea.
As Apple has a lot of services like they have their music service along with fitness, cloud storage why would they not think of introducing their search engine as well. But from users’ point of view, it would be a lot more terrifying to platforms other than google.
What Is the Lawsuit Condition Going on?
In 2020 it was reported by the Newyork times that Apple is being provided around 8-12 billion dollars per year by Google. According to CNBC what Google paid in 2018 accounted for more than 20% of Apple services revenue.
So now Apple is being sued for antitrust based on their app store as they take a 30% commission from all their developers.
It’s a long story but apple started it and they hope to get this change so that developers including them, of course, don’t have to pay that large percentage to apple, and also Apple doesn’t let developers use their payment methods on their platform as well. Apple is acting anti-competitive.
Now according to the lawsuit, the agreement which was signed between Google and Apple is illegal as it is against the antitrust law of the US.
The UK regulators are increasing their antitrust investigations into this deal as it poses a significant barrier to entry for new competitors.
It also looks like according to investigators google paid over 1.2 billion pounds just to be the default search engine here in the UK.
Google’s rivals like Microsoft, bing, yahoo, and DuckDuckGo all make payments to apple in exchange for being search engine options on apple devices too. So it looks like that if you want to play the game you have to have the money to sit at this search engine table.
The UK competition and markets authority did say that Apple could offer a choice screen where users could choose their search engine on their devices during the setup process.
Here Google is playing extremely smartly as they know that people usually do not change their search engine. Secondly google not only provides services to Apple but also has a huge platform which is covering the android world.
This means Google will be marketing on a very broad level by putting a lot of ads targeting huge audiences. Here Google is working on capturing the market share.
They already have strong roots all over the world in terms of tech but they are taking it a step ahead by investing a large amount of money in different forms.