Google Wants to Cut Partnership with Apple’s Safari Amid Justice Department Antitrust Investigation: Report

Google is reportedly under investigation by the Department of Justice, and its relationship with Apple is under scrutiny. The subject of the investigation could be Google’s substantial payments to Apple, estimated at over $20 billion per year, to secure its position as the default search engine on iPhones (via 9To5Mac). The DOJ claims that the arrangement restricts competition in the search engine industry. Although Apple is not a named party in the lawsuit, Apple executives, including Eddy Cue, have testified.

A recent report from The Information sheds light on Google’s strategic moves to reduce its reliance on Apple’s Safari browser in anticipation of the outcome of the antitrust case. For years, Google has tried to redirect iPhone users to its own Google and Chrome apps for searches. While there has been some progress, with the share of searches through those apps rising to a low 30 percent from 25 percent five years ago, that momentum stalled in the second half of last year. That number remains well below Google’s goal of reaching 50 percent by 2030.

The billions of dollars paid to Apple are reportedly part of a revenue-sharing agreement in which Apple receives a portion of advertising revenue from Google searches conducted on Safari. By encouraging users to switch to Chrome and Google apps, Google hopes to reduce its payments to Apple and limit its exposure to regulatory action.

However, convincing users to abandon the Safari browser that comes pre-installed on Apple devices is proving to be a difficult task.

The report adds that Google recently hired Robby Stein, a former Instagram and Yahoo executive, to lead the initiative. Stein’s mandate includes using generative AI to make Google apps more engaging, people involved in the project revealed. Google executives even considered limiting the AI Overviews feature, which provides AI-generated search answers, to its own apps. That would have meant Safari users wouldn’t benefit from AI Overviews, a move that was ultimately abandoned.

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Published: Jul 05, 2024, 09:35 PM IST