$Microsoft (MSFT.US)$'s CEO Satya Nadella has testified that $Apple (AAPL.US)$'s selection of its default search engine holds significant influence during his testimony at $Alphabet-A (GOOGL.US)$'s Google antitrust trial.
What Happened: During his testimony at Google's antitrust trial, Nadella revealed the extent to which his company was willing to go to secure the coveted position of Apple's default search engine.
He stated that Microsoft was open to obscuring its search engine's "Bing" brand on Apple devices to unseat Google from its default search engine status.
This included providing "strategic adaptability" regarding the branding of the search engine and urging Cupertino to assess its technology without being tied to the Bing label, reported Bloomberg.
Securing the position as Apple's default search engine is considered a game-changer in the tech industry, with Nadella saying, "Whomever they choose, they king-make."
However, despite making progress between 2013 and 2017, when the iPhone maker opted to replace Google as the search engine for Siri and the Spotlight feature, Apple ultimately reverted to the Sundar Pichai-led company for the default search engine in its Safari web browser.
The negotiations to drop the Bing brand occurred in 2018, with the proposal of Safari search results being powered by Bing under an alternative brand. Nadella further revealed that since becoming CEO in 2014, he has consistently endeavored to replace Google as Apple's default search engine, the report noted.
He also suggested that Apple used Microsoft to increase its payment from Google, asking, "Do you think Google would continue to pay Apple if there was no search competition? Why would they do that?"
Why It's Important: The Department of Justice's case against Google centers on allegations that the search giant used its dominance to stifle competition and harm consumers. Google allegedly pays substantial sums annually to remain the default option for Apple devices.
However, Eddy Cue, Apple's services chief, cited Google's superior search results as the reason for their partnership, resulting in approximately $8 billion in annual revenue.
During the ongoing antitrust trial, it was also revealed that Apple declined Microsoft's offer to purchase Bing around 2020, although it has now been reported that the Tim Cook-led company is making significant strides to launch its own search engine.