Wallstreetcn
2023.09.29 00:39
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In order to bring down Google, three years ago, Microsoft discussed selling Bing to Apple.

According to media reports citing informed sources, Microsoft had discussed selling its search engine Bing to Apple in 2020. Apple would then set Bing as the default search engine on its devices instead of Google. However, in order to secure the position of the default browser on Apple devices, Google pays Apple billions of dollars each year. Faced with the temptation of this money and doubts about Bing's functionality, Apple did not switch its search engine to Bing.

On Thursday, September 28th, according to sources, Microsoft reportedly discussed the possibility of selling its search engine, Bing, to Apple in 2020. Apple would then set Bing as the default search engine on its devices, instead of Google.

At the time, Microsoft executives met with Apple's Senior Vice President of Services, Eddy Cue, to discuss the possibility of acquiring Bing. However, sources say that the discussion was more exploratory and did not reach the stage of negotiating the details of the acquisition.

In fact, discussions between Microsoft and Apple about making Bing the default browser on Apple devices have never ceased, but Apple ultimately chose Google. Now, the U.S. Department of Justice is in legal proceedings against Google, seeking to prove that the company has abused its dominant position in the search engine market. This may present a new opportunity for negotiations between Apple and Microsoft. The relationship between Apple and Google is at the core of this case, as Google has spent billions of dollars to dominate its search engine on iPhones and other devices.

During the trial of the Google antitrust case in Washington on Wednesday, Microsoft's Advertising and Web Search Director, Mikhail Parakhin, revealed that Microsoft has been trying for years to persuade Apple to switch to Bing as the default search engine on iPhones. However, Apple has never seriously considered changing its choice and has used Bing as a bargaining chip in negotiations with Google.

Parakhin said that Microsoft met with Apple in 2021 to discuss the possibility of Apple switching to Bing, but no progress was made. He said:

Apple makes more money from Bing than Bing itself. We (Microsoft) have been trying to convince Apple to use our search engine.

Microsoft launched Bing in 2009 as a competitor to Google, but the product has never gained significant market share in a meaningful way. Google still dominates the industry, with Bing accounting for less than 10% of search volume.

Apple and Microsoft are now involved in the U.S. government's lawsuit against Google, and executives from both companies are testifying in the ongoing trial. The Department of Justice is using Apple's dealings with Google as evidence of Google's unfair dominance in the search market. In earlier testimony this week, Apple refuted these claims, stating that they use Google because it is the best search option.

In 2002, before Apple released its first Mac web browser, Apple reached its first search engine agreement with Google. Over time, this agreement expanded to Apple's new devices, especially the iPhone. According to the Department of Justice, by 2020, Apple was receiving $4 billion to $7 billion annually from Google. The agreement covers the Safari web browser on iPhone, iPad, and Mac, with Safari receiving a certain percentage of the revenue.

Sources say that the significant revenue Apple receives from Google each year is a key reason why Apple has refused to acquire Bing. Sources also indicate that Apple is concerned about Bing's ability to compete with Google in terms of quality and functionality. However, Apple still used Bing in some of its businesses. From 2013 to 2017, Bing was the default web search engine for Siri and Spotlight. But as part of an updated revenue sharing agreement, Apple fully returned to Google in 2017.