Verizon’s Executive Reveals Unprecedented Google Search Engine Deal: No Bids Sought

A top executive from Verizon testified on Monday that the company did not consider other bids before finalizing a recent deal with Google to make it the default search engine on their mobile phones. Brian Higgins, a long-time Verizon executive involved in negotiating the deals with Google, testified in the second week of the landmark antitrust trial against Big Tech. According to Bloomberg, Higgins stated on the stand, “I’m not aware of us soliciting bids.” However, he did not provide a reason as to why Verizon did not open the bidding process to other companies like Microsoft. This testimony may support the argument made by the Department of Justice (DOJ) that Google pays a significant amount to secure its search engine’s default position and divert users from rivals.

Higgins further added, “To the best of my knowledge, I believe it is pre-installed all the time,” referring to Google’s search engine on Verizon mobile devices. While Higgins testified for approximately three hours, only a small portion of his testimony was made public, as the rest took place in a closed session due to its connection with confidential information regarding Google’s current deal with Verizon. The DOJ has expressed concerns about the extent of the redacted information. During the proceedings, federal attorney David Dahlquist pointed out a document detailing Google’s advertising pricing and argued that such information should be made public, as it plays a crucial role in the DOJ’s case against Google. However, Google attorney John Schmidtlein contended that pricing strategy details should remain confidential.

The trial also included questioning of Google executive Jerry Dischler, who oversees advertising products at the company. Antonio Rangel, a behavioral economist and professor, previously testified that Google’s default status on various devices provides the company with a significant advantage in attracting users. Rangel stated, “Search engine defaults generate a sizable and robust bias towards the default. Defaults have a powerful impact on consumer decisions.” He also countered Google’s argument that users could easily switch their default search engine, emphasizing that there are ten steps involved in switching from Google to Microsoft’s Bing, which creates significant choice friction.

The outcome of this antitrust trial holds immense implications for Google and the entire tech industry. Depending on the judge’s decision, Google could face consequential orders, such as being broken up or being required to terminate specific business practices. US District Judge Amit Mehta will ultimately decide the case.