Google CEO warned of bad optics from Apple search engine deal

Published

7 months ago

October 13, 2023

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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.

Business

Hunt calls Dorneywood summit to boost flagging UK stock market

Published

1 hour ago

April 27, 2024

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Hunt calls Dorneywood summit to boost flagging UK stock market

Jeremy Hunt is convening a summit aimed at enticing more companies to London’s stock market amid an accelerating exodus of businesses being picked off by overseas and financial predators.

Sky News has learnt that the Treasury has invited the bosses of some of Britain’s most prominent private companies to attend a meeting next month at Dorneywood, the chancellor’s weekend country residence.

Sources said the day-long event on 16 May would target entrepreneurs behind potential flotation candidates from the fintech and biotech sectors.

Bim Afolami, the City minister, and Lord Petitgas, the prime minister’s chief business adviser, will also be present, alongside key government officials and executives from the London Stock Exchange, the sources added.

In the invitation, a copy of which has been seen by Sky News, the Treasury said attendees and the chancellor would “discuss the UK’s capital markets and how they can support innovative, high-growth companies such as yours to achieve your growth ambitions”.

“The UK’s capital markets play a key role in our economy: driving growth, creating jobs and facilitating investment.

“The government is committed to ensuring that the UK remains the best place for companies to grow, and is already taking forward an ambitious programme of reforms to improve the competitiveness of the UK.”

Dozens of companies, including the likes of digital banks Monzo and Starling Bank, are understood to have been on the invitation list.

The Dorneywood summit has been planned for several months, according to officials, who denied that it was being staged in response to a glut of companies which have announced in recent weeks that they are in receipt of takeover bids or that they would unilaterally delist from the London market.

Approaches this week for Anglo American, the £30bn mining giant, and Darktrace, the cybersecurity company, have exacerbated the impression of a growing ‘de-equitisation’ of the UK stock market.

Although neither of those deals have yet to be formally agreed, a string of others have, including International Paper’s bid for DS Smith, the FTSE-100 paper and packaging group, which was revealed by Sky News last month.

Other companies which have agreed deals with suitors include Virgin Money, which is set to be bought by Nationwide in a £3bn deal.

Yet more, such as the Royal Mail parent International Distributions Services and the music royalties company Hipgnosis Songs Fund, are in receipt of serious takeover approaches.

While frenetic periods of mergers and acquisitions are far from uncommon, bankers and investors point to a dearth of attractive new opportunities to deploy capital because the flow of initial public offerings has been so slow.

Many of the companies that London would have hoped to attract, including the private equity firm CVC Capital Partners and the chip designer ARM Holdings, opted to list in Amsterdam and New York respectively.

The perception of London’s decline is being heightened by the decisions of boards to move their existing UK listings to other international exchanges, with TUI Travel and Flutter Entertainment, the gambling group behind Paddy Power, among those to relegate their London market presence.

Bosses of companies as large as Shell, the oil behemoth, have also begun to acknowledge publicly their frustration at what they perceive to be a gulf between their intrinsic valuation and that which the public markets are attaching to them.

Earlier this month, the boss of E-Therapeutics, a fast-growing but loss-making biotech company, described the London stock market as “broken and closed” as he announced plans to delist it and pursue a New York flotation at a future date.

This weekend, one government insider said the Dorneywood meeting would be important because it would highlight to fast-growing British companies that listing overseas “is not all milk and honey”.

A number of the UK-based businesses – such as Arrival, Cazoo and Benevolent AI – which went public in Europe and the US during the now-faded boom for special purpose acquisition companies – have seen their valuations crash, with some subsequently cancelling their listings.

“We need to explain to companies why London’s capital markets are the right place for these businesses to go public,” said one government source.

A Treasury spokesperson said: “The chancellor is meeting with a number of firms to hear their reflections on UK markets and what more the government and regulators can do to support their growth.”

Politics

Taiwan prosecutors target 20-year sentences for ACE exchange suspects

Published

2 hours ago

April 27, 2024

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Taiwan prosecutors target 20-year sentences for ACE exchange suspects

According to the prosecutors, the increased scale of the losses justifies the sentence recommendation.

Politics

Humza Yousaf: Scotland’s first minister claims Holyrood election could be called – as vote of no confidence looms

Published

2 hours ago

April 27, 2024

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Humza Yousaf: Scotland's first minister claims Holyrood election could be called - as vote of no confidence looms

Scotland’s First Minister Humza Yousaf claims a Holyrood election could be called as he refuses to say if he will resign if he loses a looming vote of no confidence.

Speaking exclusively to Sky News in Fife on Saturday, the SNP leader said it was “really disappointing” to learn the Greens will refuse to enter further talks to change their minds on voting against him in a ballot which could prove fatal for his leadership.

Mr Yousaf has today written to all the opposition parties, including Alex Salmond’s Alba party, at Holyrood urging them to rethink their plot to oust him.

The SNP leader said on Saturday that he was leaving it to his rivals to determine his fate.

A Green Party source said the only letter they will accept from the first minister is his resignation.

Mr Yousaf told Sky News: “Well let me say again, that would be really disappointing if that is the Greens’ position.

“As I say, I’ve reached out to them, they are saying publicly that they’re going to support a Conservative motion against independence, first minister and independence government.

“That would be, I think, a poor choice to make.”

Asked if there might be a Scottish election if he doesn’t win the vote, Mr Yousaf replied: “Can’t rule it out.”

The casting vote now looks likely to be Alba MSP Ash Regan who sensationally defected from the SNP in the wake of her defeat in the race to replace Nicola Sturgeon last year.

Sky News understands Alba is holding an emergency meeting this weekend to determine how it will cast the key vote.

When asked how SNP members would feel about being “propped up” by Mr Salmond, Mr Yousaf said: “Let me make it really, really clear, I’ll be sending out to anybody I meet with, whoever comes round that table, that these are the priorities of the SNP minority government.

“This is what we’ll be pursuing, this is what we’ll be pushing. It’ll then be up to be it Ash Regan, be it Lorna Slater, be it Patrick Harvie or any of them, to decide what button they push when it comes to the vote of no confidence.”