Google CEO Sundar Pichai once warned top executives that the company risked bad optics by pushing for its search engine to be the only option on Apples browser, according to emails submitted in the Justice Departments landmark antitrust trial.
Pichai outlined his concerns in emails sent in 2007 to Google co-founders Larry Page and Sergey Brin as well as other company leaders.
Pichai, who was heading up the team responsible for Googles Chrome browser, argued that the company should nudge Apple to allow customers to select their preferred search engine.
I know we are insisting on default, but at the same time I think we should encourage them to have Yahoo as a choice in the pull down or some other easy option, Pichai said in the email, according to Bloomberg.
I dont think it is a good user experience nor the optics is great for us to be the only provider in the browser, Pichai added.
Pichais past remarks could lend support to the Justice Departments key argument in the once-in-a-generation trial. The feds say Google pays more than $10 billion per year to smartphone makers like Apple and mobile carriers to secure default status on devices and block rivals from gaining market share.
Google has countered the argument by stating that customers choose its search engine because it is the best product of its kind. The Big Tech firms lawyers have also downplayed the importance of default status by asserting customers can change their search engine with just a few clicks.
On Tuesday, Justice Department attorneys also questioned Google executive Joan Braddi, who played a key role in negotiating the companys search deals with Apple and was included in Pichais messages.
Braddi testified that Apple repeatedly pushed for more flexibility on search engine defaults through revised terms for the Google deal including a 2014 agreement that cleared Apple to implement rivals’ search products in other countries.
When asked if Google currently pays a significant amount of money to Apple through the revenue-sharing deal, Braddi said: It wasnt always, but today, yes, according to Bloomberg.
Last week, Microsoft CEO Satya Nadella, whose company operates the rival Bing search engine, said the entire notion that consumers have a choice in the online search market is completely bogus due to Googles dominant hold on the market.
Google has a roughly 90% market share in online search, easily outpacing that of competitors such as Microsofts Bing and the privacy-focused DuckDuckGo.
Search advertising generated $42.6 billion in quarterly revenue, according to its latest earnings report in July — bucking a trend that has seen a slowdown in rivals Meta and Snap, Bloomberg reported.
Googles long-term partnership with Apple has been a central focus during the antitrust trial, which is roughly halfway through its expected 10-week run time.
Google has been the default search engine for Apples Safari browser since 2002. The two companies most recently renegotiated the deal in 2021.
Longtime Apple executive Eddy Cue, the companys senior vice president of services, previously defended the deal on the witness stand.
Cue told the court that Apple selected Google because there certainly wasnt a valid alternative we would have gone to at the time. He added that Apple hasnt developed its own search engine due to the quality of Googles product.
The US government redesignated Garantex on Thursday to its list of sanctioned entities, along with its successor, Grinex, but TRM Labs suggests it may be ineffective.
Since last year’s general election, Sir Mel Stride has become a familiar face for those of us who like our politics.
During the campaign, he regularly found himself on breakfast TV and radio. So much so, Sir Mel was referred to as the “minister for the morning round” by some of our industry colleagues.
By our count, he was on Sky News Breakfast at least 10 times during the campaign’s 43 days.
Following the election, and losing the Conservative leadership race to Kemi Badenoch, Sir Mel now puts questions to Rachel Reeves as shadow chancellor.
Still seen as a safe pair of hands, Sir Mel’s penchant for doing the “morning round” hasn’t slowed down either, making regular appearances on breakfast TV and radio.
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Luckily, he found some time between all that to sit down for an interview with Sky’s Beth Rigby for the Electoral Dysfunction podcast. He spoke about his transition to Opposition, taking on Reform, and the most controversial topic in Westminster – lunch.
Here’s what we learned:
1. Opposition isn’t ‘awful’ – but it is like ‘warfare’
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‘I think people will see through Reform’s populism’
Before the election, Sir Mel served as work and pensions secretary. Shifting to the Opposition was not “awful”, despite losing the muscle of the civil service.
“But it is like guerrilla warfare,” he said.
“You suddenly lose all the trappings of government. Somebody once said to me, ‘when you get in the back of a car and you sit down and it doesn’t go anywhere, that’s when you realise you’re no longer a minister’.
“So it is that sort of sense of being looked after that disappears.”
There’s also a smaller team of Conservatives in the Commons. Before the election, Rishi Sunak had 343 MPs behind him.
Ms Badenoch currently only has 119.
“When you’re down to 120 MPs – and some set piece events, there might be only a fraction of those people there – it’s much quieter.
“What I actually often do is I can be quite provocative of the Opposition to get them going, because then at least you get something to feed off. Sometimes I do that to, just get the energy in the chamber.”
2. Being at the despatch box on big days can be ‘tricky’ – but he has a ‘secret’
You may remember Sir Mel’s lively response to Rachel Reeves’s spring statement in March. He revealed that, on those big political days, he isn’t told what the chancellor will say until about half an hour before it’s said in the Commons.
“It does give you and your team literally 10 or 15 minutes to… work out what the main things are,” he said.
However, he tells Electoral Dysfunction that you do have to be able to think on your feet in that scenario.
He said: “You are thinking about ‘what are the attack lines I’m going to use?’… and amend what you’re going to do.”
He added that he doesn’t get nervous. That might have to do with Sir Mel having been president of the Oxford Union debating society “many, many years ago”.
“Now the secret’s out. The secret is out Beth, and you’re the first to have gleaned that secret from me,” he said.
To be fair, it is on his website.
3. He’s not a huge fan of Reform
Image: Nigel Farage
As the Conservatives battle with Reform for the right, Sir Mel didn’t have many positive words for Nigel Farage’s party.
“With Reform… these are populists, who peddle fantasy economics,” he said.
“‘Take everybody out of income tax up to £20,000 costs about £80bn according to the IFS [Institute For Fiscal Studies].”
The IFS has said it needed “more detail” to exactly cost Reform’s proposal, but “it could easily be in the range of £50 to £80bn a year”.
“I think ultimately,” Sir Mel says, “people will see through a lot of the populism that Reform stands for.”
He added that he believed that Reform’s 2024 manifesto, was, economically, “a work of fiction”.
“I mean, it’s quite dangerous, actually. I think if they’d been elected… the economy would have gone into a very bad place,” he said.
4. His ideal lunch? A cheese and ham toastie
Image: Ms Badenoch and Sir Mel see eye-to-eye on many things – lunch isn’t one of them. Pic: PA
Sir Mel also addressed the most pressing issue of all – lunch.
If you’re unaware, this has proven a controversial subject in Westminster. Ms Badenoch told The Spectator in December she was “not a sandwich person… lunch is for wimps”.
In March, however, Ms Reeves gave a rebuttal to Electoral Dysfunction, revealing she whips up a cheddar sandwich in 11 Downing Street when she can.
Sir Mel falls more in line with his opposite number than his leader.
“I’ve always liked a sandwich, particularly a toasted sandwich,” he said.
“I’d go with the Cadillac, the Rolls Royce of sandwiches, a ham and cheese.”
Sir Mel has previously, however, been partial to some more peculiar fillings.
“Do you remember those Breville toastie makers? When I went to university, I had one of those, or whatever the equivalent was,” he said.
“You could put baked beans in, eggs in, and all sorts of things.
“It was fantastic.”
To each, their own.
Electoral Dysfunction unites political powerhouses Beth Rigby, Ruth Davidson, and Harriet Harman to cut through the spin, and explain to you what’s really going on in Westminster and beyond.
Want to leave a question for Beth, Ruth, and Harriet?