Sources familiar with the matter revealed that Microsoft had discussed selling its search engine, Bing, to Apple in 2020, according to Bloomberg. The proposal would have set Bing as the default search engine on Apple devices, replacing Google.
At the time, Microsoft executives met with Apple's services chief, Eddy Cue, to discuss the potential acquisition of Bing. However, insiders suggest that the talks were preliminary and didn't delve into detailed negotiations.
While discussions about making Bing the default browser on Apple devices have been ongoing, Apple has consistently chosen Google. Now, as the U.S. Department of Justice battles Google in court, alleging the company abused its dominant position in the search engine market, the Apple-Microsoft negotiations might see new light. The crux of the case revolves around Google's multi-billion-dollar payments to Apple to maintain its search engine's dominance on iPhones and other devices.
During a court hearing in Washington on the Google monopoly case, Microsoft's head of advertising and web search, Mikhail Parakhin, testified on Wednesday. He revealed that Microsoft had tried for years to persuade Apple to use Bing as the default search engine on iPhones. However, Apple has consistently used Bing as a bargaining chip in its negotiations with Google.
Parakhin mentioned that Microsoft had met with Apple in 2021 to discuss the possibility of switching to Bing, but no progress was made. He noted that Apple earned more from the existing Bing deal than Bing itself did, and Microsoft had always been trying to convince Apple to adopt their search engine.
Launched in 2009, Microsoft introduced Bing as a competitor to Google. However, Bing has never managed to capture a significant market share, with less than 10% of search volume, while Google continues to dominate the industry.
Both Apple and Microsoft are now entangled in the U.S. government's lawsuit against Google, with executives from both companies testifying in the ongoing trial. The Justice Department is using the Apple deal as evidence of Google's unfair dominance in the search market. Earlier this week, Apple countered this claim, stating they use Google because it's the best search option.
Before Apple released its first Mac web browser in 2002, it struck its initial search engine deal with Google. Over time, this agreement expanded to Apple's newer devices, especially the iPhone. By 2020, Apple was reportedly collecting between $4 billion and $7 billion annually from Google. This deal covers the Safari web browser on iPhones, iPads, and Macs, with Safari receiving a percentage of the revenue.
Insiders suggest that the substantial revenue Apple receives from Google each year is a key reason for Apple's refusal to acquire Bing. There are also concerns about Bing's ability to compete with Google in terms of quality and features.
Nevertheless, Apple has incorporated Bing into some of its services. From 2013 to 2017, Bing was the default web search engine within Siri and Spotlight. However, as part of a revised revenue-sharing agreement, Apple fully reverted to Google in 2017.
