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Apple exec lists 3 reasons the iPhone maker doesn't want to build a search engine
AAPLApple(AAPL) Business Insider·2024-12-26 20:21

Core Viewpoint - Apple has no plans to develop its own search engine, preferring to maintain its partnership with Google as the default search engine on its devices, which is central to its business strategy [1][2][4]. Group 1: Reasons for Not Building a Search Engine - Developing a search engine would require significant financial investment, estimated in billions of dollars, and would take many years, diverting resources from other growth areas [6]. - The search engine market is rapidly evolving, particularly with advancements in artificial intelligence, making current investments economically risky [6]. - Apple lacks the necessary infrastructure and expertise to build a successful search advertising business, which is not aligned with its core business model and could conflict with its privacy commitments [6]. Group 2: Legal Context and Implications - The discussion around Apple's decision is framed within the context of the Department of Justice's antitrust case against Google, which claims Google holds an illegal monopoly in the search engine market [4][5]. - Eddy Cue argues that the DOJ's assumption that Apple would create its own search engine without the Google deal is incorrect, and blocking the revenue-sharing agreement could hinder Apple's ability to serve its users effectively [7]. - Apple has other revenue-sharing agreements with various search engines, including Yahoo!, Microsoft Bing, DuckDuckGo, and Ecosia, which provide access to Safari search queries [7]. Group 3: Historical Context - In 2018, Apple considered acquiring Microsoft's Bing or investing in a deal to reduce Google's dominance on its devices, but ultimately decided against it to preserve its relationship with Google [8].