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Microsoft Offered Significant Compensation to Apple in an Attempt to Oust Google

Microsoft CEO Satya Nadella expressed concerns about Google’s ability to leverage its search engine dominance to exert control over crucial content providers needed for training generative AI models. During a courtroom appearance in Washington DC, where the US Department of Justice is pursuing a case against Google for alleged antitrust violations, Nadella criticized Google’s market power and business practices.

Nadella emphasized the difficulty for competitors to challenge Google’s monopoly in the search engine market, citing Microsoft’s own struggles with its Bing search engine since 2009. He argued that Google’s arrangements with Apple, which make Google the default search engine on the iPhone, have played a significant role in solidifying Google’s position.

The ongoing trial is one of the most significant antitrust cases involving a major tech company since the US government took action against Microsoft over the dominance of its Windows operating system more than two decades ago. Nadella supported the government’s claim that Google’s vast data collection and network effect further strengthened its advertising and user appeal.

Regarding search engine success, Nadella stressed the importance of being the default option and revealed that Microsoft was willing to pay Apple substantially to make Bing the default search engine on the iPhone, asserting that defaults were crucial.

Despite earlier efforts to integrate AI technology into Bing, Nadella no longer believed that the emergence of ChatGPT would disrupt Google’s dominance in the search industry. Instead, he expressed worries that Google could exploit its search dominance to pressure content providers, which are vital for training generative AI models, potentially worsening the competitive landscape.

 

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