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US v. Google: Microsoft says the company has tried for years to displace Google as the iPhone's default search engine, but Apple never seriously considered Bing

Bloomberg Leah Nylen

Context & Ripple Effects

The testimony sits within a record of repeated but unsuccessful alternatives to Google on Apple devices: Microsoft later explored selling Bing to Apple, while Apple also declined DuckDuckGo for Safari private browsing.

The commercial stakes are unusually clear in the related coverage: Google’s 2022 payment to remain Safari’s default tied default placement to a major Apple revenue stream, even as Apple’s executives later characterized Bing as an unacceptable substitute.

First-order effects

  • Microsoft’s account makes Apple’s willingness to switch—not merely the size of a rival bid—a central question in assessing Google’s default-search position.
  • Google gains evidence for the argument that its Safari placement reflects product preference as well as payments; Apple’s choice preserves the existing Google default in the period described.

Second-order effects

  • A rival seeking iPhone search distribution must clear Apple’s quality and product-integration threshold, limiting the leverage of pricing offers alone.
  • The record raises the value of default access for search competitors: without it, Bing and other challengers must rely more heavily on users actively changing settings.

Third-order effects

  • If device makers continue to treat default search as a product-quality decision alongside a revenue decision, competition scrutiny will turn on whether rivals can realistically overcome both barriers.
  • The episode points to route-share economics in which control of the browser or device gateway can matter as much as competing search engines’ underlying capability.

The trend: Search competition is increasingly shaped by who controls high-traffic defaults—and by whether those defaults can be contested on product merit, commercial terms, or both.

Discussion

  • @khushitavasant @khushitavasant on x
    Interesting testimony this morning from Mikhail Parakhin, CEO @Microsoft ads & web services in Google search trial: “My impression is Apple always used us as a bargaining chip against @Google. It is no secret that @Apple is making more money on @Bing than Bing does.” #antitrust
  • @modestproposal1 @modestproposal1 on x
    “Apple is making more money on Bing existing than Bing does,” Mikhail Parakhin, the head of Microsoft's advertising and web services, testified [image]
  • @matthewstoller Matt Stoller on x
    Microsoft can't invest in search until it gets more distribution, which Google blocks by paying Apple $20B a year. This is pretty compelling testimony that Google is thwarting competition. https://www.bloomberg.com/...
  • @matthewstoller Matt Stoller on x
    Another key moment is when Apple exec Eddie Cue said that if the Google deal had fallen “maybe we would have built our own” search engine. DOJ didn't follow up on that comment, at least not in public. https://www.bigtechontrial.com/ ... [image]
  • @leehepner Lee Hepner on x
    No doubt of interest to private litigants in California alleging Google illegally pays Apple to split markets by not developing its own search engine. CCSI v Google, N.D. Cal., Case No. 5:22-cv-10001 (granted leave to amend)
  • @kylebrussell Kyle Russell on x
    trillion dollar companies posting their Ls