US v. Google: Sundar Pichai floated Apple bundling a Google iOS app to Tim Cook in 2018, as Apple pointed to lower revenue growth from their revenue-share deal
The disclosure adds detail to a long-running commercial relationship in which Google sought prominent Apple distribution while Apple monitored the economics closely. Earlier trial coverage documented concerns about the public perception of paying for Safari’s preselected search slot, including Pichai's concerns about the deal's “optics”.
The arrangement’s stakes became clearer when Pichai later confirmed that Apple received 36% of Google search revenue generated on iPhones. The proposed app bundle shows the parties discussing distribution options beyond the default-search placement.
First-order effects
In the US v. Google record, the 2018 discussion gives the court another example of Google pursuing Apple-controlled iOS distribution, while Apple signaled dissatisfaction with the revenue-share deal’s growth.
Apple’s position underscores that its leverage over iOS access extended to negotiating the commercial terms, not merely accepting Google’s preferred distribution arrangement.
Second-order effects
Evidence of alternative distribution proposals may sharpen scrutiny of whether Google’s payments and placement arrangements foreclosed rivals, rather than reflecting only a standard default-setting choice.
For Apple, the episode highlights the bargaining value of controlling major iPhone entry points; Google must weigh app placement, default status, and revenue sharing as connected levers.
Third-order effects
If platform owners can trade access across defaults, apps, and revenue shares, competition cases will increasingly assess the full distribution bundle rather than any one contract term.
The broader risk for Google is that remedies aimed at default search could shift negotiations toward other Apple-controlled surfaces, leaving gatekeeper leverage intact unless remedies address those substitutes.
The trend: This is one data point in the growing scrutiny of how platform gatekeepers monetize control of user-distribution channels through bundled commercial arrangements.
Cred Fail #3: Pichai said he wasn't concerned about Apple poaching Google's search team in an unusual way. Then we see his email asking for monthly reports on employees jumping to competition, and an individual report for each and every employee jumping from G search to Apple. /7
DOJ just completed its cross examination of Pichai. States will ask Pichai questions on cross after lunch break. During last hour, DOJ asked Pichai about a meeting he and other Google executives had with Apple executives including CEO Tim Cook in 2018. DOJ presented Pichai
. @sundarpichai testifies to there being “so much tension,” “moments of mistrust” at both @Google & @Apple during search default deal meeting. Pichai downplays an email saying “Our vision is that we work as if we are one company” as “irrational exuberance” on part of Google execs
Google CEO Sundar Pichai on the stand this morning insisted that Google's revenue share agreements weren't just for default status, but also for “promotional” support. Minutes later DOJ presented a Google document summarizing negotiations with Apple: “no default, no rev share”
Lunch break! A few important points from Pichai's testimony so far: First, this true gem from the notes on his annual meeting w/ Tim Cook about their multi billion dollar deal for Google's default position on iphone: “our vision is that we work as if we are one company.”
As DOJ brought up with Pichai, an internal Google summary of a 2019 CEOs meeting noted Tim Cook saying “Our vision is that we work as if we are one company” and “Imagine us being able to be deep deep partners, deeply connected where our service ends and yours begins.” #USvGoogle
USA vs Google. Today was Google's CEO Sundar Pichai. Although he came across as mr nice ceo (standing up), I was surprised to see him hurt defense's credibility considering he was Google's witness with apex preparation. I began starring examples in my notes so will share here. /1
Get this, Google proposed MSFT promoted to users to select their default search stating this “Eliminates any company's own self-interest and places control in hands of end user where it belongs.” Look out for this letter when it posts for the public. GOOG (Drummond) to MSFT. /6
Google roughly stated MSFT's move to add default search into the browser... “Puts its own interests above end user. As you know, most end users don't change defaults...we are deeply concerned about harm to the competitive process.” wow /4