In the midst of an ongoing antitrust lawsuit filed by the US Department of Justice, Google is actively working to reduce its dependence on Apple’s Safari browser for iPhone searches. A recent report by The Information reveals that Google aims to double the number of searches conducted through its own apps on iPhones, potentially altering the dynamics between the two tech giants.
The Antitrust Lawsuit and Its Implications
The lawsuit, which challenges Google’s dominant position in the search market, places significant emphasis on the lucrative agreement between Google and Apple that designates Google as the default search engine on Safari. This arrangement reportedly generated over 2000 Cr. for Apple in 2022, constituting 36% of ad revenue from Safari searches.
Google’s Strategic Shift and Challenges
Google’s push to steer users away from Safari is driven by the potential consequences of an adverse court ruling. The Information reports that Google has set an ambitious target of increasing iPhone searches through its apps to 50% by 2030, a substantial increase from the current low 30% range. However, achieving this goal has proven difficult.
Marketing Efforts and Feature Enhancements
Despite extensive marketing campaigns and the introduction of exclusive features like Lens image search and the Discover feed in its mobile apps, Google has struggled to significantly boost adoption rates among iPhone users. The percentage of iPhone searches conducted through Google’s apps has only risen from 25% to the low 30s over the past five years.
High Stakes for Both Companies
The outcome of this situation carries significant implications for both companies. For Apple, the payments from Google constitute a substantial revenue source. For Google, losing access to Safari as the default search engine could affect approximately 70% of iPhone searches, potentially impacting its mobile search advertising revenue. The possibility of Google offering its AI Gemini to Apple in the future remains a topic of speculation.
