Apple’s Bid to Sustain Its Power Alliance with Google Amid Search Duopoly Tussle
Apple Takes a Stand: Defending its Lucrative Deal with Google
In a recent development, Apple has taken steps to safeguard its long-standing partnership with Google, a deal that reportedly earns the former tens of billions of dollars annually. Despite increasing scrutiny from US regulators, Apple is adamant about keeping the search engine giant on its devices, claiming it wouldn’t be economical to build its own search engine.
The Numbers Say it All
In court filings, Apple stated that it won’t be pursuing a search engine rival, citing the massive capital investment and years required to create a viable competitor. With artificial intelligence rapidly changing the search landscape, Apple deems it “economically risky” to devote the necessary resources to create a search engine from scratch.
A Reality Check: The Challenges of Building a Search Engine
• Developing a search engine would divert valuable resources and expertise away from Apple’s other growth areas.
• The increasing reliance on artificial intelligence in search engines makes it difficult to compete with established players.
• Creating a search advertising platform requires significant infrastructure and personnel, which Apple hasn’t demonstrated as a core competence.
The US Department of Justice: Keeping a Watchful Eye
The US Department of Justice is investigating Google’s dominance in the search market and its potential impact on competition in the online ecosystem. As the regulator weighs the evidence, Apple has taken it upon itself to intervene in the antitrust proceedings to defend its partnership with Google.
The Stakes are High: Will Apple Keep its Google Search Deal?
While the investigation is ongoing, the stakes are clear: if the government decides to force Google to loosen its agreements with browser-makers, it could put Apple’s lucrative deal with the search engine giant at risk. For now, Apple appears determined to fight to keep the arrangement intact.