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Google and Alphabet Inc. CEO Sundar Pichai arrives at the federal courthouse in Washington, Monday, Oct. 30, 2023.

Jose Luis Magana | AP

Google CEO Sundar Pichai defended the company’s agreements to make its search engine the default on web browsers and phones, addressed the government’s allegations that it destroyed chat messages and described the company’s complicated relationship with Apple, during testimony in D.C. District Court on Monday.

The testimony was the first opportunity for government attorneys to press Alphabet’s top executive in open court on the company’s actions to secure its dominant position in online search. The Department of Justice and a coalition of state attorneys general are seeking to prove that Google has sought to lock out rivals from key distribution channels for search through exclusive deals with phone manufacturers and web browser-makers.

For the last month and a half of the trial, the government has been working to make its case that Google’s actions violate antitrust law through illegal monopoly maintenance. The lack of competition in general search tools, the government argues, deprives consumers of improved quality and choice.

The government’s cross-examination of Pichai on Monday highlighted how Google has contended with the possibility of losing out on key distribution channels when it was a much smaller company.

The government has claimed that Google unfairly cuts off rivals from places where consumers could find them by paying billions to secure its own search engine as the default on many access points. That, the government seemed to be arguing, is very similar to what Google railed against Microsoft for doing back in 2005.

At the time, Microsoft had announced the latest version of its web browser, Internet Explorer 7 (IE7). In that version, Microsoft planned to build search into its toolbar so that users did not need to download separate extensions to search from that part of the browser. The search engine for that module would be determined by whatever users picked in the previous version of IE.

But Google was concerned that it was too hard for users to find the setting to change the default search engine on IE7, so Microsoft’s own default engine would likely be the one to receive most of the queries entered through the new browser toolbar. Pichai testified that to his knowledge, “not a single user” used the IE setting in the earlier version of the browser to change the search engine from Microsoft’s.

While Google has argued in its own defense that users can easily switch their default search engine on browsers and phones if they so choose, Google’s then-Chief Legal Officer David Drummond wrote to Microsoft’s then-General Counsel Brad Smith in a 2005 letter, “As you know, most end users do not change defaults.”

That line hits at a key element of the government’s argument: that while it may be possible for users to switch their search engine on the Safari browser on the iPhone, for example, few actually do.

In defense, Pichai said Drummond’s statement was specific to the way Microsoft was implementing defaults on its browser.

“By pushing out an update of IE with a new search box that will default to Microsoft’s own search product in the vast majority of cases, Microsoft would gain a large number of search users for reasons having nothing to do with the merits of Microsoft’s search offering,” Drummond wrote at the time.

Google had “proposed instead that users be prompted to select the default search provider the first time they use the inline search feature,” Drummond wrote in the 2005 letter.

Pichai said the request reflected what Google saw as “a unique egregious case of how they were not honoring user preference at all,” because it didn’t reflect how users actually engaged with search engines.

Department of Justice attorney Meagan Bellshaw contrasted the request with Google’s approach to choice screens under its own revenue-sharing contracts with phone manufacturers.

Pichai testified that Google does not prohibit choice screens, but conceded that for phone manufacturers who agree to the revenue sharing agreement (RSA), providing a choice screen for the search engine would not be consistent with the agreement. He said that when doing a commercial deal like the RSA, “we are paying for enhanced promotion.” He added that phone manufacturers “have the option not to take the RSA.”

Later, Bellshaw showed a 2007 presentation from a Google employee who helped negotiate revenue-sharing deals. One slide said that “What Apple wants” is for Google to be one of two search provider options. Pichai said this was specifically for a version of Safari on PCs.

Notes from a 2007 meeting showed that Google was aware of the power of defaults. According to those notes, someone asked how much of a difference default status makes. The answer: “Typically 75% take rate. Defaults have strong impact.”

Relationship between Google and Apple

Pichai worried about losing employees to competitors, including Apple, the DOJ argued.

Bellshaw presented a 2019 email from Pichai, which the CEO said summarized another executive’s concerns with recent turnover. Pichai asked for “monthly reports of all losses to key competitors on an ongoing basis.” But if anyone from the search team went to Apple, he asked to be notified for each case.

Pichai said he wasn’t sure if he’d actually received those reports.

Bellshaw also tried to press Pichai on Google’s close relationship with Apple when it came to their search deal, while they competed in other realms like the smartphone market.

In notes from a 2018 meeting that included Pichai and Apple CEO Tim Cook, a Google executive recounted that Google expressed, “Our vision is that we work as if we are one company.” Pichai testified that he did not recall saying that line. He added that coming out of that meeting, during which Apple wanted to discuss concerns about revenue growth deceleration on Safari under their existing deal, “there was some what I would call irrational exuberance.”

In 2021, Pichai approved an extension of the 2016 deal with Apple.

On Friday, the court learned that Google paid $26.3 billion in 2021 to be the default search engine on mobile phones and web browsers. That number includes how much it pays to Apple, as well as other companies.

Deleted chats

The DOJ also addressed Google’s policy of not automatically retaining internal chat messages, despite being subject to a litigation hold. In February, the DOJ alleged that Google “systematically destroyed” instant message chats through its history-off option that allowed them to be deleted every 24 hours unless a user manually changed the setting.

Pichai acknowledged he was aware of the history-off default for chat that persisted until February and that he had taken action to change that.

Bellshaw pointed to a message exchange where Pichai asked for history to be turned off in a group chat in 2021. Pichai testified that he did so to discuss a personnel matter, along the lines of who would be a good speaker at an event. It was not something even “remotely” close to something covered by the litigation hold, he said.

“I take great care to comply with all litigation holds,” Pichai testified.

Bellshaw also asked if Pichai would mark documents or messages as attorney-client privileged and copy Google’s Chief Legal Officer Kent Walker, even when he wasn’t explicitly seeking legal advice. Pichai said no.

Bellshaw pointed to Pichai’s 2022 deposition, where he conceded it was possible that on occasion he accidentally included Walker and asked for advice, when he was really seeking to mark something as confidential.

Bellshaw also returned to the earlier letter Drummond sent to Smith in 2005 about IE7. In the letter, Drummond said legal action was a “foreseeable possibility” and asked Microsoft to “take care to retain all past and future records relating to any plans to tie search to any Microsoft product or otherwise deprive consumers of competitive choice and search.”

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Amazon launches first Kuiper internet satellites in bid to take on Elon Musk’s Starlink

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Amazon launches first Kuiper internet satellites in bid to take on Elon Musk's Starlink

A United Launch Alliance Atlas V rocket is on the launch pad carrying Amazon’s Project Kuiper internet network satellites, which are expected to eventually rival Elon Musk’s Starlink system, at the Cape Canaveral Space Force Station in Cape Canaveral, Florida, U.S., April 9, 2025. 

Steve Nesius | Reuters

Amazon on Monday launched the first batch of its Kuiper internet satellites into space after an earlier attempt was scrubbed due to inclement weather.

A United Launch Alliance rocket carrying 27 Kuiper satellites lifted off from a launchpad at the Cape Canaveral Space Force Station in Florida shortly after 7 p.m. eastern, according to a livestream.

“We had a nice smooth countdown, beautiful weather, beautiful liftoff, and Atlas V is on its way to orbit to take those 27 Kuiper satellites, put them on their way and really start this new era in internet connectivity,” Caleb Weiss, a systems engineer at ULA, said on the livestream following the launch.

The satellites are expected to separate from the rocket roughly 280 miles above Earth’s surface, at which point Amazon will look to confirm the satellites can independently maneuver and communicate with its employees on the ground.

Six years ago Amazon unveiled its plans to build a constellation of internet-beaming satellites in low Earth orbit, called Project Kuiper. The service will compete directly with Elon Musk’s Starlink, which currently dominates the market and has 8,000 satellites in orbit.

The first Kuiper mission kicks off what will need to become a steady cadence of launches in order for Amazon to meet a deadline set by the Federal Communications Commission. The agency expects the company to have half of its total constellation, or 1,618 satellites, up in the air by July 2026.

Amazon has booked more than 80 launches to deploy dozens of satellites at a time. In addition to ULA, its launch partners include Musk’s SpaceX (parent company of Starlink), European company Arianespace and Jeff Bezos’ space exploration startup Blue Origin.

Amazon is spending as much as $10 billion to build the Kuiper network. It hopes to begin commercial service for consumers, enterprises and government later this year.

In his shareholder letter earlier this month, Amazon CEO Andy Jassy said Kuiper will require upfront investment at first, but eventually the company expects it to be “a meaningful operating income and ROIC business for us.” ROIC stands for return on invested capital.

Investors will be listening for any commentary around further capex spend on Kuiper when Amazon reports first-quarter earnings after the bell on Thursday.

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Oracle engineers caused days-long software outage at U.S. hospitals

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Oracle engineers caused days-long software outage at U.S. hospitals

Larry Ellison, co-founder and executive chairman of Oracle Corp., speaks during the Oracle OpenWorld 2018 conference in San Francisco, California, U.S., on Monday, Oct. 22, 2018.

David Paul Morris | Bloomberg | Getty Images

Oracle engineers mistakenly triggered a five-day software outage at a number of Community Health Systems hospitals, causing the facilities to temporarily return to paper-based patient records.

CHS told CNBC that the outage involving Oracle Health, the company’s electronic health record (EHR) system, affected “several” hospitals, leading them to activate “downtime procedures.” Trade publication Becker’s Hospital Review reported that 45 hospitals were hit.

The outage began on April 23, after engineers conducting maintenance work mistakenly deleted critical storage connected to a key database, a CHS spokesperson said in a statement. The outage was resolved on Monday, and was not related to a cyberattack or other security incident.

CHS is based in Tennessee and includes 72 hospitals in 14 states, according to the medical system’s website.

“Despite this being a major outage, our hospitals were able to maintain services with no material impact,” the spokesperson said. “We are proud of our clinical and support teams who worked through the multi-day outage with professionalism and a commitment to delivering high-quality, safe care for patients.” 

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Oracle stock this year

Oracle didn’t immediately respond to CNBC’s request for comment.

An EHR is a digital version of a patient’s medical history that’s updated by doctors and nurses. It’s crucial software within the U.S. health-care system, and outages can cause serious disruptions to patient care. Oracle acquired EHR vendor Cerner in 2022 for $28.3 billion, becoming the second-biggest player in the market, behind Epic Systems.

Now that Oracle’s systems are back online, CHS said that the impacted hospitals are working to “re-establish full functionality and return to normal operations and procedures.”

Oracle’s CHS error comes weeks after the company’s federal electronic health record experienced a nationwide outage. Oracle has struggled with a thorny, years-long EHR rollout with the Department of Veterans Affairs, marred by patient safety concerns. The agency launched a strategic review of Cerner in 2021, before Oracle’s acquisition, and it temporarily paused deployment of the software in 2023.

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Palantir is soaring while its tech peers are sinking. Here’s why

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Palantir is soaring while its tech peers are sinking. Here's why

Alex Karp, chief executive officer of Palantir Technologies Inc., speaks during the AIPCon conference in Palo Alto, California, US, on March 13, 2025.

David Paul Morris | Bloomberg | Getty Images

Tech stocks have struggled in 2025, as recession and trade war fears sap investor appetite for riskier assets.

Palantir is the exception.

Against a volatile market backdrop, the software maker’s stock has gained 45% and is the best performer among companies valued at $5 billion or more, according to FactSet. The closest tech names are VeriSign, up 33%, Okta, up 30%, Robinhood, up 29%, and Uber, up 29%.

President Donald Trump‘s frenzy of government department overhauls is partially to thank for the pop.

“When you think about macroeconomic concerns, you as a company need to be more efficient, and this is where Palantir thrives,” said Bank of America analyst Mariana Pérez Mora.

Palantir has set itself apart in the software world for its artificial-intelligence-enabled tools, gaining recognition for its defense and software contracts with key U.S. government agencies, including the military. In the fourth quarter, its government revenues jumped 45% year-over-year to $343 million.

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Companies have faced immense volatility in 2025 as tariffs threaten to jeopardize global supply chains and halt day-to-day manufacturing operations by hiking costs. Those fears have brought the broad market index down about 7% this year, while the tech-heavy Nasdaq Composite has slumped 11%.

Tech’s megacap companies — Apple, Microsoft, Nvidia, Amazon, Alphabet, Meta and Tesla — are all down between 7% and 31% so far this year.

At the same time, the Trump administration has clamped down on government spending, giving Tesla CEO Elon Musk‘s Department of Government Efficiency freedom to slash public sector costs. Some administration officials have touted shifting dollars from consulting contracts to commercial software providers like Palantir, said William Blair analyst Louie DiPalma.

“Palantir’s business model is highly aligned with the priorities of the Trump administration in terms of increasing agility and being very quick to market,” he said.

That’s put Palantir in the league with major contractors such as Lockheed Martin and Northrop Grumman, which have outperformed in this year’s downdraft. Many companies in the space are also looking to partner with the firm and tend to flock to defense during recessionary times, DiPalma said.

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Palantir vs. the Nasdaq Composite

CEO Alex Karp has also been a vocal supporter of American innovation and the company’s central role in helping prop up what he called the “single best tech scene in the world” during an interview with CNBC earlier this year. Karp also told CNBC that the U.S. needs an “all-country effort” to compete against emerging adversaries.

But the ride for Palantir has been far from smooth, and shares have been susceptible to volatile swings. Shares sold off nearly 14% during the week that Trump first announced tariffs. Shares rocketed 22% one day in February on strong earnings.

Its inclusion in more passive and quant funds over the years and the growing attention of retail traders has added to that turbulence, DiPalma said. Last year, the company joined both the S&P and Nasdaq. Palantir trades at one of the highest price-to-earnings multiples in software and last traded at 185 times earnings over the next twelve months. That puts a steep bar on the stock.

“There really is no margin for error,” he said.

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