Google is ramping up efforts to reduce its dependence on Apple’s Safari browser for iPhone searches, as the threat of antitrust action looms over their significant deal. The ongoing US Department of Justice lawsuit is shining a spotlight on the lucrative agreement that designates Google as the default search engine on Safari, generating over $20 billion for Apple in 2022.
To mitigate the potential impact of a negative court ruling, Google is aiming to double the number of searches conducted through its own apps on iPhones. This strategic move could have profound implications for both tech giants, as Google pursues a goal of increasing iPhone searches through its apps from the current low 30% range to 50% by 2030. Despite facing challenges in achieving this target, Google has been investing in exclusive features and marketing campaigns to attract more users to its apps.
The stakes are high for Apple as well, given the significant revenue stream generated from its deal with Google. Losing access to Safari as the default search engine could have a considerable impact on Google’s mobile search advertising revenue, as approximately 70% of iPhone searches are conducted through Safari. This pressure might be one reason why Google is considering offering its AI Gemini to Apple in the future.
As these developments unfold, both Google and Apple are navigating a complex landscape where their partnership is under scrutiny. The outcome of the antitrust lawsuit could reshape the dynamics of their relationship and have far-reaching implications for the tech industry. The evolving competition between Google and Apple underscores the importance of strategic decisions and innovations in the rapidly changing digital ecosystem.
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