Title: Apple’s Eddy Cue testifies on Google partnership and revenue sharing in court
Subtitle: Apple’s senior vice president sheds light on the agreement and defends customer experience
Washington, D.C. – In a federal court case, Apple’s senior vice president of services, Eddy Cue, provided insights into the company’s partnership with Google as the default search engine on iPhones. Shedding light on the agreement, Cue testified that Google was chosen based on its suitability for consumers with no valid alternative.
Apple’s decision to have Google as the default search engine on iPhones comes with several considerations. Cue revealed that Apple actually has alternative search engines in place, which customers may not be aware of, leading to their hesitance in choosing differently.
The terms of the agreement between the tech giants have not been disclosed publicly. However, estimations suggest that Google may pay Apple as much as $19 billion this year.
During the trial, Cue disclosed that Apple aimed to increase the revenue share percentage that Google pays them, leading to negotiations that took place in 2016. Arguing that Apple deserved a higher revenue share due to their technology contributions, Cue discussed the matter with Apple CEO Tim Cook via email.
Despite considering alternative options, Cue testified that Apple found working out a deal with Google as the best course of action, expressing confidence in reaching an agreement.
The renewed contract between Apple and Google in 2021 includes a provision for Apple to support and defend the partnership in relation to any government actions.
Apple’s choice to make Google the default search engine on iPhones revolves around providing a seamless and efficient experience for their customers. However, it is worth noting that Apple has made exceptions in select countries such as China and Russia, where other search engines enjoy default status.
Addressing concerns surrounding Google’s privacy practices, Cue highlighted Apple’s efforts to limit Google’s tracking abilities on its devices. In fact, Cue presented a slide deck to Tim Cook back in 2013, emphasizing Apple’s commitment to privacy while criticizing Google’s practices. The company firmly believes that the iPhone offers a more private experience compared to Google’s Android mobile operating system.
During cross-examination, Cue asserted that integrating search into Apple’s browsing product enhances competitiveness. He further revealed that Apple used to allow search engines to notify customers through Safari, notifying them of the option to change their default search engine. However, this feature was discontinued due to repetitive notifications.
While changing the default search engine may seem daunting for some, Cue assured that switching is as simple as adjusting Wi-Fi settings. Apple remains committed to offering its customers the freedom to choose their preferred search engine.
As the trial continues, Apple’s partnership with Google and the factors behind their selection as the default search engine on iPhones have come under scrutiny. Cue’s testimony sheds light on these matters, highlighting the search giant’s significance for Apple’s revenue and customer experience.
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