Google CEO Sundar Pichai testified in the landmark antitrust trial, saying his company has always prioritized the interests of consumers.
He said Google has paid billions to companies like Apple and Samsung to ensure its internet search engine is faultless on those companies’ devices.
He refuted the Justice Department’s claims Google made huge payments to firms like Apple to secure default search status on their devices, indicating monopolistic behavior.
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He explained these payments were made to ensure Apple, in particular, wouldn’t compromise the search experience on its devices.
This trial, which spans 10 weeks, marks a significant effort to address the growing influence of Big Tech.
The Federal Trade Commission has also initiated its antitrust lawsuit against Meta, accusing it of stifling emerging competitors.
The department also sued Amazon for unfair treatment of small merchants and promotion of its services.Â
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In a parallel development, President Biden signed an executive order outlining the first government rules concerning artificial intelligence systems.
It’s a domain where Silicon Valley companies have been actively involved.
Pichai, standing at a lectern due to a lower back injury, aimed to counter the government’s allegations Google’s default distribution agreements with companies like Apple and Samsung undermined competition.
Google spent $26.3 billion to secure its search engine as default on mobile
Google spent $26.3 billion in 2021 to secure its search engine as the default on mobile and desktop browsers, with a significant portion, around $18 billion, allocated to Apple.
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Pichai’s testimony contradicted the assertions of Google’s competitors, who argued that these payments essentially eliminated their ability to compete.
For instance, Microsoft’s CEO, Satya Nadella, described Google’s power as turning the internet into the “Google web.”
He characterized the relationship with Apple as “oligopolistic.”
Pichai, who also serves as the CEO of Google’s parent, Alphabet, recounted his career at Google.
He began leading product and engineering for its core products, including Search, Maps, Play, and Android.
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He said that during negotiations with Apple to be the default search engine, an Apple executive, Eddy Cue, called the deal “very competitive.”
He said Mr Cue acknowledged the tension between both firms as Apple’s revenue share from the deal, which was proportional to the traffic it sends to Google, had dropped.
Pichai expressed concerns that without improved financial terms, Apple might compromise the search experience.
Pichai highlighted products like the Chrome browser and Android operating system, both featuring Google as the default search engine, as enhancing competition in the industry.
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Google must justify its actions
The trial centers on the legal standard of whether Google’s conduct has diminished competition.
It required Google to justify its actions as pro-competitive if the government proves otherwise.
The cross-examination delved into the significance of default agreements to Google’s search traffic.
An internal meeting document indicated that 75 percent of Google’s search traffic resulted from these agreements, but Pichai couldn’t fully comment on this figure.
Mr Pichai discussed a 2018 meeting with Apple’s CEO, Tim Cook, where Apple expressed concerns about the search default agreement.
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It’s due to the slower growth of Apple’s Safari revenue compared to Google’s search engine.
During cross-examination, questions probed the substantial financial arrangement between Google and Apple.
It suggests that Google paid Apple to refrain from entering the search business.
Pichai reiterated the deal’s success in increasing search usage and revenue, benefiting all parties involved.
In an exchange, Mr Pichai appeared briefly exasperated, stating that he had already provided all the reasons behind the agreement.
