The $20 billion annual agreement between Apple and Google, which allows Google to be the default search engine on iPhones, is under intense scrutiny. This agreement is an important focal point in the lawsuit filed by the US Department of Justice against Google’s dominance in the search engine industry.
In a court filing uncovered by Reuters, Apple’s Senior Vice President Eddy Cue detailed why the company is not considering developing its own search engine. Cue’s statements refute the court’s assumption that action against Google would lead Apple to develop its own search engine.
Eddy Cue listed the following three main reasons why Apple is not keen on the idea of developing a search engine:
- Apple’s focus on other growth areas:
Cue stated that developing a search engine requires billions of dollars of investment and years of intense work. The company points out that this process may negatively affect other growth areas in terms of both financial resources and employee orientation. - Changing search dynamics with artificial intelligence:
The rapid and constant change of artificial intelligence technology makes the process of developing a search engine economically risky. Cue stated that the large resources required by these changes are not attractive for Apple. - Targeted advertising doesn’t fit Apple’s business model:
A successful search engine also requires a targeted advertising platform. However, Cue emphasized that this is outside Apple’s core expertise. He noted that although the company has advertising activities in certain areas, such as the App Store, a large-scale search advertising infrastructure is incompatible with Apple’s current strategies in terms of both expert personnel and operational resources. It was also stated that such advertising may conflict with the privacy commitments that Apple has emphasized for many years.
Apple wants a say in Google case
This week, Reuters reported that Apple had filed to join Google’s US antitrust lawsuit over online search. Apple said: “Google no longer adequately represents Apple’s interests; “Google must defend against a wide-ranging effort to break up its business units,” it said in justifying its request to join the case.
Apple’s decision to stay away from search engine development with its business model that prioritizes privacy and user experience continues to be discussed with interest in the technology world. In this process, the company seems to continue focusing on its investments in artificial intelligence and other strategic areas.