Apple senior vice president for services, Eddy Cue, arrived at the Prettyman U.S. Courthouse in Washington, D.C., on September 26, 2023 (Getty Images).
In his testimony, Cue explained why Apple made Google the default search engine on iPhones, stating that it was the best choice for consumers and there was no valid alternative. While the specifics of the agreement remain undisclosed, Cue shed light on some rarely discussed aspects of the deal.
Cue emphasized that Apple selects the best search engine and allows customers to easily change it if they prefer. He also mentioned that Apple offers alternative search engines that customers may not be familiar with, which can make them hesitant to make a different choice.
Industry analysts estimate that Google could pay Apple up to $19 billion this year under the agreement.
During the renegotiation of the Information Services Agreement in 2016, Cue aimed to increase the revenue share percentage that Google pays to Apple. He believed that Apple deserved a higher share considering the technology it had developed.
Cue referenced an email exchange with Apple CEO Tim Cook, where Cook inquired about the meeting with Google CEO Sundar Pichai. Cue responded that it was good except for the revenue sharing percentage, as Pichai did not provide a specific number that met Apple’s expectations.
Although Cue expressed confidence in reaching a deal with Google, he admitted that Apple did not seriously consider an alternative search engine.
Ultimately, Cue believed that finalizing a deal with Google was in the best interest of both companies. The agreement was renewed in 2021.
The Department of Justice questioned Cue about a provision in the agreement that required Apple to support and defend the deal in connection with government actions. While Cue confirmed the provision’s existence, he admitted his limited knowledge about it.
The DOJ also asked Cue about how Apple offers consumers a choice for setting up their iPhones. Cue acknowledged the challenge of providing too many choices, as it can frustrate customers who expect their new devices to work quickly. He said that offering choices for appearance settings is different from selecting a search engine.
In some countries, such as China and Russia, Apple has chosen to make Google the default search engine because it believes there is a better option for consumers in those regions. However, in other parts of the world, Apple still sees Google as offering the best search experience.
Cue reiterated Apple’s concerns about Google’s privacy practices and stated that Apple has taken steps to limit Google’s tracking ability on its devices. He referenced a slide deck he shared with Cook in 2013, highlighting Google’s privacy controversies.
During cross-examination, Cue emphasized the importance of integrating search into Apple’s browsing product to stay competitive. He also mentioned that Apple pioneered the feature of searching the web from the address bar, which later became popular in other browsers.
Apple no longer allows search engines to notify customers through Safari about changing their default search engine due to the repeated notifications diminishing the consumer experience.
Cue concluded by stating that it is easy for consumers to change their default search engines if they know how to set up their Wi-Fi.
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