Google CEO admits the importance of being the default search engine

Testifying in the most important US antitrust trial in 25 years, Mr Pichai admitted that deals to make Google 's search engine the default on smartphones and browsers could be "very valuable".

Done correctly, deals with tech giants, smartphone makers and mobile telecoms companies – worth billions of dollars a year – “can make a difference,” he said.

“There are scenarios where defaults are very valuable,” he added, and users benefit as well.

Google CEO Sundar Pichai arrives at the Washington federal court on October 30, where the antitrust trial entered its seventh week. (Photo: AP)

The US government accuses Google of maintaining an illegal monopoly by paying for deals that ensure its search engine appears prominently on smartphones and browsers. The company denies this and says it faces stiff competition and its market share is a result of the strength of its products that consumers choose to use.

Previously, the US Justice Department revealed that Google spent up to $10 billion a year on such agreements. However, in a hearing on October 27, an executive shared that the "giant" paid $26.3 billion for the above transactions in 2021.

Mr. Pichai is the highest-profile witness to appear in the landmark trial since Microsoft CEO Satya Nadella appeared earlier this month.

Microsoft was presented in court as the most prominent technology company challenging Google's dominance of the internet search market through its Bing engine. In his testimony, Mr. Nadella said the argument that users have a choice in search is "bogus."

Prosecutors claim Google used similar practices to those used by Microsoft in the early 2000s. Justice Department attorney Meagan Bellshaw on October 30 cited a letter sent by Google as Microsoft prepared to launch a new version of its Internet Explorer browser in the 2000s.

Google threatens legal action because Microsoft's search engine will become the default in the new browser and users will not be prompted to choose.

Under agreements to make Google the default search engine, Google prohibits its partners from prompting users to choose their own default search engine.

Mr Pichai argued that Microsoft at the time did not “respect” users because Internet Explorer’s default settings were hidden. He said he had observed Microsoft’s efforts to make it difficult for users to switch their default browser or search engine “all the time”.

Attorney Bellshaw also cited a 2008 email from a Google employee to corporate staff that said their instant messages would be kept private because the company was "facing a number of significant legal and regulatory issues."

Federal prosecutors claim Google hid evidence and destroyed documents for years. However, Google claims it has provided more than 5 million documents in the case.

During the trial, a Justice Department lawyer asked Mr. Pichai about a 2007 discussion among Google executives, including Mr. Pichai—not yet CEO—about Apple’s request to let users choose their search engine on a new version of its Safari browser. A document from the time said that 75% of people did not change their default settings, noting: “Defaults are powerful.”

However, Google argues that if people are not satisfied with their default search engine, they can switch to another provider. Besides, the revenue sharing agreement is legal and the company has invested a lot to maintain the competitiveness of the search and advertising segment.

The ongoing trial is the most significant antitrust case against Big Tech since the Justice Department accused Microsoft in the 1990s of trying to kill the Netscape web browser with its Windows operating system. A judge ordered Microsoft to be broken up, but the ruling was ultimately overturned on appeal.

(According to FT, Reuters)

Google spends $26 billion to be the default search engine According to records released on October 27, Google spent $26.3 billion to be the default search engine on mobile phones and web browsers in 2021.

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