In a move that could have reshaped the search engine landscape, Microsoft (MSFT) approached Apple (AAPL) around 2020 with a proposal to sell its Bing search engine. The intent behind this potential transaction was to position Bing as the default search option on Apple devices, thereby replacing Google (GOOGL). While the discussions between Microsoft and Eddy Cue, Apple’s services chief, were preliminary, they hold renewed relevance due to the ongoing legal battle between the US Department of Justice and Google regarding search dominance. This case underscores Apple’s alliance with Google, for which it receives billions, ensuring Google's search engine's primacy on Apple devices.
Though Microsoft introduced Bing in 2009 as a challenger to Google, it remains a minor player in the market, commanding less than 10% of searches. The crux of the ongoing legal tussle is the lucrative deal between Apple and Google. The Department of Justice alleges that Google's dominance in the search arena is fortified unjustly by the Apple agreement. Defending their stance, Apple's Cue testified that the partnership persists simply because Google offers superior search capabilities.
Economic considerations were significant deterrents in Apple's decision against the Bing acquisition. The considerable revenue generated from Google made the prospect of adopting Bing less appealing, compounded by reservations about Bing's competitive stance against Google regarding search quality and functionality. Interestingly, Apple had integrated Bing as the default web search engine for Siri and Spotlight from 2013 to 2017, only to revert to Google after renegotiating terms.
Despite the allure of the potential Bing acquisition, Apple has consistently leaned towards Google as its preferred search engine partner. Renewed in 2021, this partnership indicates Google's sustained dominance in the search engine arena, with Bing and other competitors yet to pose a formidable challenge. Apple’s modus operandi, as seen in past acquisitions, leans towards assimilating foundational technology rather than integrating established brands.
