Apple Executive Says Firm Considered Bing Acquisition to Challenge Google

Unsealed testimony from an Apple senior vice president has revealed that the tech giant considered acquiring Microsoft’s search engine, Bing, as a potential competitor to Google’s search dominance.

This disclosure during an antitrust trial against Google provides a glimpse into the strategic maneuvers of industry players and the difficulties faced by companies seeking to challenge Google, the Washington Post reported Thursday (Oct. 5).

With a commanding 90% market share in the search sector, Google presents a formidable challenge for any company attempting to enter the market, according to the report. Apple, in particular, has relied on Google as the default search engine on its devices, resulting in a lucrative revenue-sharing agreement estimated to be worth up to $19 billion this year.

However, the unsealed testimony reveals that Apple explored the possibility of acquiring Bing to mount a challenge against Google, the report said. According to the testimony of Apple’s senior vice president, John Giannandrea, the company contemplated launching its own search engine and engaged in discussions with Microsoft about acquiring Bing in 2018.

After careful evaluation, though, Apple ultimately decided against pursuing the acquisition, per the report. Giannandrea expressed a “definitive opinion” against the deal, and Apple CEO Tim Cook conveyed this decision to Microsoft.

The testimony shed light on Apple’s revenue-sharing agreement with Google and its influence on the decision-making process, according to the report. Apple strategically used Bing as leverage during negotiations with Google, aiming to secure a favorable revenue-sharing arrangement. This approach allowed Apple to maximize its revenue from Google while keeping the possibility of replacing Google open for the future.

Apple’s consideration of acquiring Bing highlights the challenges faced by companies attempting to compete with Google in the search sector, the report said. Google’s dominant market share and vast resources make it difficult for potential competitors to gain traction. The unsealed testimony provides insights into the complex dynamics of the industry and the strategies employed by major players.

This report comes a week after a Microsoft executive testified that Microsoft considered investing billions of dollars in a deal with Apple in 2016, aiming to make Microsoft’s Bing search engine the default on Apple’s Safari browser.

Jon Tinter, a business development vice president at Microsoft, testified Sept. 28 that the goal of the potential agreement was to challenge Google’s dominance of the search engine market.