Shares of Google Parent Alphabet Inc. Tanked more than 7% on Wednesday after Apple’s senior executive signaled that the iPhone manufacturer was watching the search engine alternatives for his web browser.
Eddie Cue, the senior Vice President of Apple’s services, testified on Wednesday as part of the Department of Justice Anti -Google Antitrust lawsuit that Apple was actively looking at the search engines with him, who would replace Google as the predetermined option on the iPhone and other devices.
Alphabet shares recently were out of more than 9%, or $ 15.25, at $ 149.95.
Cue, who reports directly to CEO Tim Cook, testified in court Wednesday that Apple has noticed a decrease in the number of searches conducted by Safari users – an increasing number of which they have emigrated to him, according to Bloomberg.
Cue said he is expecting search platforms directed by artificial intelligence-such as Openai’s chatgt, confused and anthropic-to eventually search for traditional search engines like Google.
He added that Apple plans to integrate these developing tools as search options within the safari below the line.
“We will include them in the formation – though they will certainly not be defined as default,” he said, stressing that services still need refinement.
Cue confirmed that Apple has held preliminary talks with deceit.
“Before he got into the game, I didn’t see any of the alternatives as serious contenders,” he said.
“But I think the landscape is changing. Now there is real potential thanks to new players who approach the challenge with fresh prospects.”
Apple currently integrates chatgpt as a feature inside Syria and is expected to introduce its Google-Meta Mjemjers to seek with AI later this year.
According to Cue, Apple also praised the anthropic offers, confusion, Deepseek and Elon Musk’s Grok during the process.
Cue stressed that deal with Openai does not limit Apple’s flexibility, saying “allows [Apple] To add other providers to it to the company’s operating system, including itself. “
Cue revealed that before Chatgt was selected at Power Apple Intelligence in iOS 18, the company had praised numerous contenders – including Google.
He described the process as a “baking” and said Google presented a term leaf that included “many things Apple would not agree and disagree with Openai”.
Cue emphasized that the rapid pace of innovation in technology could eventually make the most essential outdated devices.
“You may not need an iPhone 10 years from now as crazy as it sounds,” he said.
“The only way you really have real competition is when you have technology shifts. Technology changes create these options. It is a new technology shift, and is creating new opportunities for new entry.”
He also noted that for the platforms of him to remain competitive, they will need to significantly improve their research indices.
However, even if that progress is slow, he believes that the advantages of the tools driven by him may already be enough to attract users.
“Now there is enough money, plenty of great players, which I don’t see how it doesn’t happen,” Cue said, referring to a wider departure away from traditional search engines towards him.
The alphabet shares dropped up to 7% on Wednesday, helping to attract the wider decline market.
Apple also got a hit, dropping up to 2.5% after Cue testimony.
The S&P 500 index, which had grown more than 0.5% earlier during the day, briefly returned negative.
In 2022, Google paid Apple $ 20 billion to remain the predetermined safari search engine on iPhone, iPads and Macs.
This figure was revealed in court documents during the Antitrust Department of Justice against Google, marking the first public confirmation of the payment amount.
The deal between Google and Apple has been a central point in the DOJ issue, which claims that significant Google payments to ensure the predetermined search engine status on various platforms have contributed to its predominance in the search market.
Doj claims that such arrangements hinder competition by making it challenging for rival search engines to gain visibility and market share.
The post has requested comment from the alphabet.
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