Eddy Cue, Apple’s senior vice president of services, returned to a Washington, D.C., courtroom this week to defend Apple’s multibillion-dollar search partnership with Google. At stake is the $20 billion Google pays Apple annually to remain the default search engine on Safari — a deal under fire following the Justice Department’s antitrust win against Google.
Cue argued that while Google may still dominate traditional web search, the landscape is already shifting. Generative AI, he said, is emerging fast enough to challenge Google’s monopoly without court-ordered remedies. “For the first time in 22 years, we saw a drop in Safari search volume,” Cue testified, linking the decline to users turning to AI chatbots for information.
Apple Warns of Financial Blow if Deal Is Broken
The court is weighing how to respond to its 2023 ruling that Google illegally maintained its dominance through exclusionary agreements, including the Safari deal. The DOJ wants aggressive remedies, such as forcing Google to share search data and possibly spinning off Chrome. Google, meanwhile, has proposed lighter changes, like offering Apple flexibility to sign with other search providers.
Cue warned that stripping the Safari deal could hit Apple hard. “We don’t really have a choice today,” he said. Even if Apple cut a deal with another provider, most users would likely still choose Google — leaving Apple out of the revenue loop. “That just seems crazy to me,” he said, reacting to the idea that Apple could suffer financially from a case brought against Google.
Cue acknowledged the DOJ’s concern that the agreement may have discouraged Apple from developing its own search engine. But he pushed back on the assumption that Apple should do so. “We can’t do everything,” he said, adding that Apple prefers to focus on areas where it can offer distinct value.
He also confirmed Apple is exploring AI-powered search tools but said they aren’t yet a viable replacement. “To date, they’re just not good enough,” he told the court.
AI to Threaten Google’s Search Monopoly
Even as he backed Google’s position, Cue agreed that the DOJ’s proposal to syndicate Google’s search index might speed up AI competitors’ progress. He cited the rise of large language model companies trying to combine smaller search indexes with conversational AI. “There’s much greater potential,” he said. “New entrants are attacking the problem in a different way.”
Cue closed by emphasizing the nature of tech disruption, noting that dominance in Silicon Valley rarely lasts. “We’re not an oil company,” he said. “You may not need an iPhone 10 years from now.” AI, he added, marks a “huge technological shift,” and the pace of change could upend current power dynamics faster than any court order.
Cue’s testimony highlights Apple’s effort to preserve a vital revenue stream — even as it acknowledges that the very technologies threatening Google’s dominance could soon redefine the search market entirely.