Google has proposed a surprising idea in its fight to keep its $20 billion annual deal with Apple.
The tech giant suggested that the iPhone and iPad could have different default search engines to allow more competition.
Google pays Apple over $20 billion annually to be the default search engine on Safari. This deal benefits both companies: Google gains valuable ad revenue, and Apple earns easy money for setting Google as the default.
However, a U.S. court ruled this payment gives Google an unfair advantage over smaller search engines. The Department of Justice (DOJ) has asked for a 10-year ban on such payments.
Google countered with two ideas. First, it proposed reducing the ban from 10 years to 3 years, arguing that the tech landscape is changing rapidly with generative AI services like ChatGPT.
Second, it suggested allowing different search engines for iPhones and iPads, implying that competitors could bid separately for each device.
Google believes this approach could encourage competition while still letting Apple and other companies earn revenue.
Apple values a consistent user experience across its devices and is unlikely to accept deals that create different search defaults for iPhones and iPads. Critics have called Google’s proposal unrealistic and impractical.
While Google dominates search now, the rise of AI tools like ChatGPT has shown that the landscape can change quickly.
Google hopes to shorten the ban and retain some of its foothold in Apple’s ecosystem. For now, Apple may face a significant revenue loss if the court enforces the ban.
