Headline: Apple Senior Executive to Testify in DOJ Case Accusing Google of Creating Monopoly
In a highly anticipated federal court hearing, Eddy Cue, Apple’s senior vice president of services, is set to testify regarding an accusation by the U.S. Department of Justice against tech giant Google. The accusation, which revolves around Google’s alleged monopoly in the online search industry, has raised concerns about the company’s licensing agreements.
Google reportedly pays Apple billions of dollars to ensure that it remains the default search engine on the iPhone’s browser and other settings. In fact, Bernstein estimates that this year alone, Google could end up paying as much as $19 billion to Apple. This lucrative deal has caught the attention of regulators, sparking an investigation into potential anti-competitive behavior.
Expected to take the stand, Cue is likely to testify that Apple chose Google as the default search engine because it simply offered the best product on the market. According to his anticipated testimony, Apple saw no need to invest resources in developing its own search engine when Google already existed. Moreover, Cue is expected to reveal that Apple has revenue-sharing agreements with other search engines, including Yahoo, Microsoft Bing, DuckDuckGo, and Ecosia, allowing users to change their default search engines if desired.
Cue’s testimony could shed light on the closely guarded details of a secret and high-profile deal that has shaped the technology industry for over a decade. The money Google pays Apple for securing default placement is considered one of its biggest costs, while the advertising revenue generated from Google serves as a significant portion of Apple’s profits.
In Apple’s fiscal year 2022, the company’s services business, which includes the revenue from Google, racked up an impressive $78.1 billion in sales. Apple CEO Tim Cook, having previously acknowledged the deal, expressed his belief that Google’s search engine is the best when questioned about using it as the default search engine for iPhones back in 2018.
As this widely-watched trial unfolds, the testimony from Apple’s senior executive is expected to provide valuable insights into the inner workings of the tech industry and the financial dynamics behind these influential partnerships.
Stay tuned to ‘World News Live’ for the latest developments in this case and other global news updates.
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