Apple has officially ruled out creating its own search engine to compete with Google, citing the enormous economic risks involved. In a motion to intervene filed with the Department of Justice (DOJ) on Monday, Apple's senior VP of services Eddy Cue explained that developing a search engine would cost billions of dollars and take many years, making it an unviable option for the company.
The filing comes as part of the DOJ's antitrust case against Google, where Apple stands to gain up to $20 billion in the penalty phase of the case due to its ongoing default search engine deal with Google. The DOJ and Google have disagreed on how to address Google's monopoly on general-purpose search engines, with both parties tentatively accepting the need to cut or renegotiate Google's partnership with Apple.
Last week, Google proposed a three-year ban on strict long-term exclusivity deals involving any "proprietary Apple feature or functionality." However, Cue warned that removing the search deal would ultimately hurt Apple and benefit Google. According to Cue, if Apple were to remove Google Search as an option on Safari, it would harm both Apple and its customers, as users prefer Google.
Moreover, Cue emphasized that creating a search engine would be "economically risky" for Apple, requiring the company to adopt targeted advertising as a core service to make search viable. This would be at odds with Apple's privacy-focused business model, which prioritizes user privacy over targeted advertising revenue.
Instead, Cue suggested that AI chatbots are the next big evolution in search, and Apple is likely to focus on developing this technology in the future. This move would allow Apple to maintain its commitment to user privacy while still providing innovative search capabilities to its users.
Cue also emphasized that "only Apple can speak to what kinds of future collaborations can best serve its users" and warned that the DOJ's proposed remedies would "hamstring" Apple from fulfilling its customers' needs. This statement highlights Apple's desire to maintain control over its ecosystem and user experience, rather than being forced into a particular solution by the DOJ.
The implications of Apple's decision are significant, as it means that the company will not be entering the search engine market anytime soon. This could have far-reaching consequences for the search engine landscape, as Apple's significant resources and user base could have potentially disrupted Google's dominance. Instead, Apple will likely focus on developing AI chatbots and other innovative technologies that align with its business model and values.
In conclusion, Apple's decision not to create its own search engine is a significant development in the tech industry, with far-reaching implications for the search engine market and user experience. As the DOJ's antitrust case against Google continues to unfold, it will be interesting to see how Apple's decision affects the outcome and the future of search technology.