A Microsoft executive testified at the ongoing Google antitrust trial that Apple seemingly used Bing as a mere “bargaining chip” against the internet giant, never intending to replace Google Search with Bing as the default search engine on its devices.
that Mikhail Parakhin, Microsoft’s Chief of Advertising and Web Services, testified Wednesday that Apple’s purported consideration of replacing Google with Bing were strategic, aimed at extracting larger payments from Google. This statement was made during what is being termed as the most significant U.S. antitrust trial in a quarter-century, shedding light on the intricate dynamics between the tech behemoths.
Analysts estimate that Apple rakes in a staggering $15 billion to $20 billion annually in revenue-sharing payments from Google. This substantial revenue is generated as users click on advertisements in search results, with Google enjoying the coveted default slot on Apple’s myriad of devices. Parakhin’s comments, which drew laughter in the courtroom, highlighted Microsoft’s years of fruitless efforts in trying to replace Google on Apple’s platforms. “It is no secret that Apple is making more money on Bing existing than Bing does,” remarked Parakhin, explaining the seemingly unequal relationship between the companies involved.
The trial also delved into discussions surrounding the role of AI in search engines. Google’s legal team countered arguments about its market dominance by emphasizing the advancements in AI, asserting that search engines can now enhance results without relying extensively on user data. This perspective was contrasted by Parakhin’s analogy comparing AI to driverless cars, implying that AI is not quite ready to take the driver’s seat in search engine technology. “We’ve seen companies try. We haven’t seen anybody succeed,” he stated, responding to queries about the feasibility of building a search engine solely based on machine learning.
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