Apple has taken centre stage in the high-stakes battle between the DOJ and Google. Not as a target but as an ally of Google. Now, why would Apple help Google, given that they are often seen as rivals? It’s because they don’t trust Google to protect Apple’s interests in a billion-dollar search deal. However, the US Government is arguing that such agreements stifle competition. Many are left wondering why Apple doesn’t just build its own search engine.
Three reasons why Apple isn’t going head-to-head with Google in the search market.
While reviewing the court filings, I stumbled upon a declaration from Apple’s Senior Vice President of Services, Eddy Cue. It clearly explains why creating a search engine does not align with Apple’s current priorities and expertise. And I broke it down to three main reasons.
It’s Not Core to Apple’s Business
Apple’s strengths lie in hardware and services, not search or advertising. Building a viable search engine would require setting up a massive platform to handle targeted ads. This is something Apple has deliberately avoided due to its focus on user privacy. While the company dabbles in niche advertising, such as on the App Store, running a full-scale search advertising operation would pull Apple into an area that doesn’t align with its values.
The Costs Are Enormous
Apple estimates that building a competitive search engine would take billions of dollars and years of development. With search rapidly evolving thanks to advancements in AI, this kind of investment comes with significant economic risks.
Apple’s Strategic Focus Is Elsewhere
Instead of diverting resources to search, Apple prioritises growth areas aligning with its strengths, such as hardware innovations, health technology, and subscription services. Diverting talent and capital to chase a market already dominated by Google simply doesn’t make sense for Apple.
While Apple will never directly state that, it acknowledges that it could never build a product that could realistically compete with Google. Cue states in the declaration that “because customers prefer Google, removing it as an option would harm both Apple and its customers.”
The partnership with Google is incredibly lucrative, as the revenue-sharing agreements bring Apple around $20 billion annually. This deal allows Google Search to remain the default engine on Safari and other Apple tools like Siri. It’s a mutually beneficial relationship.
Apple’s decision not to build a search engine is independent of any legal outcomes from the trial. Even if its deal with Google were to be disrupted, Apple argues that entering the search engine market would still not be viable.