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CNN —Whenever you type a search into Apple’s Safari browser — say, on an iPhone — chances are it’s Google that returns the results. You can tell Safari to pick another search engine, but in practice most people tend to stick with Google by default. You might know that Google pays Apple enormous sums of money every year for that prime placement. Those eye-popping figures, newly unsealed this week, come from a blockbuster antitrust lawsuit against Google that’s just entered its closing stages. Nothing prevented Apple from choosing a different default search partner, Google contends.
Persons: , Google that’s, Trump, Amit Mehta, Mehta, ” Mehta, John Schmidtlein, Google’s, Sherman, , ” Schmidtlein Organizations: CNN, Google, Apple, Justice Department, DOJ, Microsoft
Antitrust trials are full of long stretches of detailed, often tedious testimony punctuated by telling moments. In the two-month Google antitrust trial that is nearing its conclusion, one of those moments came in a brief exchange in October. The barriers to competition in search today, Mr. Schmidtlein said, are less daunting than Microsoft’s stranglehold on personal computer software. “Let’s move on,” said Judge Amit P. Mehta, who wrote in an opinion earlier in the year that he would use the Microsoft case as a guiding framework. “I think I can figure out what the Microsoft case was about.”The antitrust fight against Microsoft in the 1990s has loomed over the government’s showdown with Google.
Persons: John Schmidtlein, Google’s, Schmidtlein, , , Amit P, Mehta Organizations: Justice Department, Microsoft, Google
Google pays Apple more than a third of its search advertising revenue from Safari under the terms of the two companies' search default agreement, an Alphabet witness said in open court Monday amid a protracted antitrust battle between Google and the Department of Justice. The 36% figure, which was not previously known to the public, is one of the clearest indications of how lucrative Google's search deal has been for both Apple and the search engine company. The search default agreement is a major focus of the proceedings. Bernstein analyst Toni Sacconaghi has estimated in a note to clients that Apple would see $19 billion in 2023 revenue as a result of the search engine default deal with Google. "Everybody talks about the open web, but there really is the Google web," he said on the stand.
Persons: Kevin Murphy, Department's, John Schmidtlein, Murphy, Amit Mehta, Bernstein, Toni Sacconaghi, Apple, Sundar Pichai, Satya Nadella, Nadella, Microsoft's Bing Organizations: Google, Apple, Safari, Department of Justice, University of Chicago, Williams, Connolly, Bloomberg News, Microsoft
(Photo by Mandel NGAN / AFP) (Photo by MANDEL NGAN/AFP via Getty Images)Alphabet CEO Sundar Pichai on Tuesday confirmed that Google pays Apple 36% of Safari search revenue, under the terms of a default search agreement that is core to the Justice Department's antitrust claims. Pichai was testifying in a separate lawsuit filed against Google by Epic Games, the maker of Fortnite. The Epic attorney then alleged that Google pays Samsung, Android's largest hardware partner, less than half of what it pays to Apple. Google's TAC costs include all of Google's payments to companies like Apple and Samsung to place its search engine in front of users. Apple, Google and Samsung did not immediately respond to CNBC's request for comment on Pichai's testimony.
Persons: Sundar Pichai, Mandel NGAN, MANDEL NGAN, Pichai, Google's, Kevin Murphy, Murphy, Connolly, John Schmidtlein, Leswing Organizations: Artificial Intelligence, Getty, Google, Apple, Epic Games, Washington , D.C, Samsung, Google's TAC, University of Chicago, Williams, Department, D.C Locations: Washington ,, AFP, Virginia, Washington
Pichai, whom Google called as a star witness, opened his testimony by recounting his journey from Chennai, India to Google and his path to becoming the tech company’s CEO in 2015. “The correlation was pretty clear to see,” Pichai said, before Google attorney John Schmidtlein presented an internal email from 2010 showing research that users who switched from Microsoft’s Internet Explorer performed 48% more Google searches. Users of Mozilla’s Firefox browser that switched to Chrome performed 27% more searches on Google, the email said. Google has paid Apple more than an estimated $10 billion a year to be the default on Apple devices and software. In 2021, Google paid $26.3 billion to secure default agreements with its partners worldwide, according to a slide introduced in the trial last week.
Persons: Sundar Pichai, Pichai, ” Pichai, John Schmidtlein, Chrome, Satya Nadella, Apple “, Eddy, Bing, ” Google Organizations: Washington CNN, Court, District of Columbia, Microsoft, Google, Apple, Justice Department Locations: Chennai, India
A woman holds her smart phone which displays the Google home page, in this picture illustration taken February 24, 2016. Google's James Kolotouros, who negotiated search distribution agreements with Android device makers and carriers, testified the agreements gave Google search exclusivity, and Google monitored compliance with them. Advertisers are not told their LTV, and Google uses "tunings" to adjust the price of ads, he said. Google's vice president and general manager of ads, Jerry Dischler, acknowledged that Google earned more than $100 billion in 2020 from search ads. Apple's (AAPL.O) senior vice president of services Eddie Cue praised Google's search and acknowledged under questioning that the smartphone maker had meetings with Microsoft and DuckDuckGo, which uses Bing searches, but found them inadequate.
Persons: Eric Gaillard, Google's James Kolotouros, Adam Juda, Joshua Lowcock, Jerry Dischler, Satya Nadella, Eddie Cue, Bing, John Schmidtlein, Google's, Diane Bartz, Marguerita Choy Organizations: REUTERS, U.S, Google, Department, GOOGLE, Verizon, Samsung, LTV, UM Worldwide, Microsoft, Apple, Nokia, Bing, Thomson Locations: WASHINGTON
A woman holds her smart phone which displays the Google home page, in this picture illustration taken February 24, 2016. Google's vice president and general manager of ads, Jerry Dischler, acknowledged that Google earned more than $100 billion in 2020 from search ads. GOOGLE'S DEFENSE NO. GOOGLE'S DEFENSE NO. GOOGLE DEFENSE NO.
Persons: Eric Gaillard, Sundar Pichai, Kevin Murphy, Apple, Joshua Lowcock, Jerry Dischler, Eddie Cue, Bing, John Schmidtlein, Google's, Jennifer Fitzpatrick, Diane Bartz, Marguerita Choy Organizations: REUTERS, U.S, Google, Justice Department, Verizon, Samsung, University of Chicago Booth School of Business, Microsoft, UM Worldwide, Nokia, Bing, GOOGLE, Core Systems, Thomson Locations: WASHINGTON
[1/2] The Microsoft logo is seen at the Microsoft store in New York City, July 28, 2015. REBUFFED BY APPLENadella also testified that Microsoft had sought to make its Bing search engine the default on Apple (AAPL.O) smartphones but was rebuffed. On laptops, most of which use Microsoft operating systems, Bing is the default search engine and has a market share below 20%, Nadella acknowledged. Nadella became CEO of Microsoft in 2014, long after the tech giant faced its own federal antitrust lawsuit. As Google, which was founded in 1998, became an industry leading search engine, the two became bitter rivals.
Persons: Mike Segar, Satya Nadella, Nadella, U.S . Justice Department's, APPLE Nadella, John Schmidtlein, Google's, Schmidtlein, Bing, Amit Mehta, Diane Bartz, Christina Fincher, Deepa Babington Organizations: Microsoft, REUTERS, Google, U.S . Justice, Apple, APPLE, Bing, Verizon, BlackBerry, Nokia, District of Columbia, Thomson Locations: New York City, WASHINGTON, U.S, Bing, OpenAI
Drew Angerer | Getty ImagesWhen it comes to online search, it's Google's web and everyone else is playing in it, according to rival Microsoft. "Everybody talks about the open web, but there is really the Google web," Nadella said from the stand in Washington, D.C., District Court. Perhaps the most famous of those deals is the multibillion-dollar agreement between Google and Apple to make Google search the default on Apple products like the iPhone. He said the integration issues with Google's Search Ads 360 "keeps coming up in escalations" to him. Microsoft has begun integrating ChatGPT into its Bing search results through its partnership with OpenAI and is a leading player in the space, alongside Google.
Persons: Satya Nadella, Nadella, Drew Angerer, Satya Nadella's, Microsoft's Bing, Bing, Bernstein, they've, it's, Connolly's John Schmidtlein, Schmidtlein, there's, Google's, roundtables, he's Organizations: Microsoft, Google, Washington , D.C, Department of Justice, Apple, Apple Microsoft, Windows, Microsoft Windows, Washington Post, Verizon, Bing, AGs, OpenAI, YouTube, CNBC Locations: Washington ,, Washington, Silicon Valley
Kevin Hodges, a partner at law firm Williams & Connolly, was the first member of Amazon's defense team identified in a court document in the case. Amazon General Counsel David Zapolsky, a 24-year veteran of the company's legal department, can turn to a stable of top outside law firms that already represent it. Thomas Barnett, co-chair of the firm’s antitrust practice and a former senior Justice Department official, was involved in the effort. A Covington spokesperson did not respond to a request for comment on whether the firm is defending Amazon in the FTC antitrust case. Amazon has also turned to U.S. law firm Paul, Weiss, Rifkind, Wharton & Garrison to navigate government scrutiny.
Persons: Jim Vondruska, Kevin Hodges, Williams, Connolly, Hodges, John Schmidtlein, David Zapolsky, Lina Khan, Thomas Barnett, Covington, Paul, Weiss, Garrison, Paul Weiss, Andrew Goudsward, Mike Scarcella, David Bario, Matthew Lewis Organizations: Amazon Logistics, REUTERS, U.S . Federal Trade, Amazon.com, Amazon, Williams, U.S . Justice, Microsoft, BP, Big Tech, Alphabet's, Google, FTC, Burling, Department, D.C, Covington, Thomson Locations: Chicago . Illinois, U.S, WASHINGTON, Washington, Mexico, Covington, Rifkind, Wharton
REUTERS/Arnd Wiegmann/File PhotoWASHINGTON (Reuters) - The U.S. Justice Department on Monday questioned a Verizon executive about the company’s decision to always pre-install Google’s Chrome browser with Google search on its mobile phones, as the government sought to show that Alphabet’s Google broke antitrust law to maintain its dominance in online search. Antonio Rangel, who teaches behavioral biology at the California Institute of Technology, testified last week that people are likely to stick with defaults like search engines or map apps on computers and mobile phones. In response, Google lawyer John Schmidtlein showed the court data indicating that users happily stick with Google’s search engine when pre-installed on their devices but switch away from others they like less. Companies have defended themselves by emphasizing that their services are free, as in the case of Google, or inexpensive, as in the case of Amazon.com. He may decide simply to order Google to stop practices he has found to be illegal or he may order Google to sell assets.
Persons: Arnd, Brian Higgins, , Google’s, James Kolotouros, Antonio Rangel, John Schmidtlein, Trump, Judge Amit Mehta Organizations: REUTERS, WASHINGTON, U.S . Justice, Verizon, Google, California Institute of Technology, Companies Locations: Zurich, Switzerland, Washington, California, U.S
The government’s case is not that Google violated the law in becoming a search giant. Instead, the government claims that after Google became dominant, the company broke the law with its tactics to defend its monopoly. Google replies that the government’s case is an artifice of misleading theory unsupported by the facts. Those truths, according to Google, are that the company holds its leading position in search because of its technical innovation. Those contracts, Google argues, help reduce prices for smartphones and benefit consumers.
Persons: ” John Schmidtlein, Google’s, Brian Higgins, Amit P, Mehta Organizations: Google, Justice Department, Verizon
The trial began Tuesday with talk of the "future of the internet" but quickly plunged into the weeds of commercial agreements with Android makers like Motorola and Samsung. James Kolotouros, a Google executive responsible for negotiating the company's agreements with Android device makers and carriers, testified late in the week that Google pressed Android smartphone makers to have Google as the default search engine and other Google apps pre-installed on their machines. The antitrust fight has major implications for Big Tech, which has spent years being scrutinized by Congress and antitrust enforcers. Google argues that its search engine is wildly popular because of its quality, and payments to wireless companies or others were compensation for partners. The government also questioned a former Google executive, Chris Barton, who was at Google from 2004 to 2011.
Persons: Department's, Brian Higgins, James Kolotouros, Google's John Schmidtlein, Kolotouros, Antonio Rangel, Chris Barton, Barton, Bing, Tim Wu, Diane Bartz, Chizu Organizations: Google, Verizon, Motorola, Samsung, Department, Big Tech, Companies, California Institute of Technology, Biden, Thomson Locations: Bing
New York CNN —Google has reached a $93 million settlement with the state of California to resolve allegations that it was collecting consumers’ data without their consent, the state’s attorney general said in a statement Thursday. The state also said that Google factors in location in its “behavioral profile” of users. For example, the original complaint said that Google continued to collect and store location data even when users turned off the “location history” setting, just in different ways. As part of the settlement, Google would have to be more transparent about its location tracking and disclose to users that their location information could be used for targeted ads. The proposed order is subject to court approval, the state’s attorney general said.
Persons: Rob Bonta, we’ve, Bonta, Biden, John Schmidtlein Organizations: New, New York CNN, Google, California Department of Justice, DOJ Locations: New York, California, United States
An illuminated Google logo is seen inside an office building in Zurich, Switzerland December 5, 2018. Rangel discussed how consumers were likely to stick with browsers on computers and mobile phones that were pre-installed as the default application. John Schmidtlein, a lawyer for Google, during cross-examination of Rangel, pointed out that a significant number of user search queries went to Google even when another search engine was the default. Google's clout in search, the government alleges, has helped Google build monopolies in some aspects of online search advertising. Search is free, so Google makes money through advertising.
Persons: Arnd, Antonio Rangel, Rangel, John Schmidtlein, Judge Amit Mehta, Diane Bartz, Mark Potter, Richard Chang Organizations: REUTERS, Rights, Justice Department, California Institute of Technology, Apple, Mozilla, Google, Big Tech, Microsoft, Thomson Locations: Zurich, Switzerland, U.S
First out of the gate, the government questioned a former Google executive, Chris Barton, about billion-dollar deals with mobile carriers and others that helped make Google the default search engine. Google's clout in search, the government argues, has helped Google build monopolies in some aspects of online search advertising. In revenue-sharing deals with mobile carriers and Android smartphone makers, Google pressed for its search to be the default and exclusive. If Microsoft's search engine Bing was the default on an Android phone, Barton said, then users would have a "difficult time finding or changing to Google." Barton said on his LinkedIn profile that he was responsible for leading Google's partnerships with mobile carriers like Verizon (VZ.N) and AT&T, estimating that the deals "drive hundreds of millions in revenue."
Persons: Chris Barton, Barton, Bing, Hal Varian, John Schmidtlein, Judge Amit Mehta, Mehta, Diane Bartz, Nick Zieminski, Richard Chang, Howard Goller Organizations: Justice, Google, Inc, Apple, Mozilla, Verizon, Big Tech, Microsoft, Thomson Locations: U.S
Chris Barton, who was at Google from 2004 to 2011, said that the company was quick to see the advantage of people using Google search on Palm devices and early versions of smartphones. "As we recognized the opportunity for search on mobile phones we began to build a product team," he said. Dintzer also said that Google manipulated auctions for internet ads in order to raise prices for advertisers. Since search is free, Google makes its money via advertising. He may decide simply to order Google to stop practices he has found to be illegal or he may order Google to sell assets.
Persons: Chris Barton, Barton, Department's Kenneth Dintzer, Dintzer, John Schmidtlein, Hal Varian, Amit Mehta, Diane Bartz, Nick Zieminski Organizations: Justice Department, Google, Verizon, AT, DOJ, Justice, Apple, Mozilla, Big Tech, Microsoft, Thomson
The Google sign is reflected in a rain puddle outside their offices in Cambridge, Massachusetts, U.S., June 27, 2017. Acquire Licensing RightsWASHINGTON, Sept 13 (Reuters Breakingviews) - Want to know how to remove Google as the iPhone’s default search tool? According to him, the search engine operated by Alphabet (GOOGL.O) enlists Apple (AAPL.O) to answer the query by directing users to its website. Using Google as the default search engine wasn’t Apple’s “choice,” Dintzer said. Follow @BenWinck on XFollow @thereallsl on XCONTEXT NEWSThe U.S. Department of Justice’s antitrust case against Alphabet’s Google started on Sept. 12.
Persons: John Schmidtlein, Kenneth Dintzer, Google, ” Schmidtlein, Schmidtlein, ” Dintzer, It’s, Tim Cook, Alphabet’s Google, Ben Winck, Lauren Silva Laughlin, Jeffrey Goldfarb, Sharon Lam Organizations: Google, Rights, Reuters, Apple, U.S . Department of, Yahoo, Verizon Communications, Microsoft, Netscape, U.S, U.S . Department, Alphabet’s, Thomson Locations: Cambridge , Massachusetts, U.S, Safari, Japan, Washington, New York
DOJ fights uphill battle; Google a losing one
  + stars: | 2023-09-12 | by ( Ben Winck | ) www.reuters.com   time to read: +5 min
The government, in its opening statements, argued that the $1.7 trillion company’s search engine partnerships illegally protected its monopoly, harming consumers. The problem for the DOJ is that consumers readily dole out their data, and not just to Google. Device manufacturers and browser creators choose Google because it’s the highest quality option, and users can easily pick another default search engine, John Schmidtlein, Google’s lead lawyer, argued. The government’s lawyers have their work cut out for them, but a DOJ loss won’t mean a Google victory. The company’s partnerships may set Google as the default search engine on devices and browsers, but users can usually change their default option with a few clicks.
Persons: General Merrick Garland, Jonathan Kanter, Kenneth Dintzer, Dintzer, Amit Mehta, John Schmidtlein, Google’s, DOJ doesn’t, Google's, Lauren Silva Laughlin, Sharon Lam Organizations: U.S . Justice, Alphabet's Google, Justice Department, Reuters, U.S . Department of Justice, Alphabet’s, Google, DOJ, Microsoft, Court, Big Tech, Alphabet’s Google, Thomson Locations: WASHINGTON
Regarding Google communications about revenue sharing deals with companies like Apple: "They knew these agreements crossed antitrust lines." JOHN SCHMIDTLEIN, lead lawyer for Google:Defending Google's 90% market share in search: "The large majority of Windows PC users search on Google, not (Microsoft's) Bing." Regarding the market place for search engines: "Users today have more search options and more ways to access information online than ever before." Discussing Apple's and Mozilla's competitions to pick best search engines: "Google won these competitions on the merits." Describing how easy it is to replace Google with a different search engine: "A few easy clicks."
Persons: Gonzalo Fuentes, KENNETH DINTZER, JOHN, Bing, Diane Bartz, Richard Chang Organizations: Google, Viva Technology, Porte de, REUTERS, Microsoft, WASHINGTON, U.S . Justice, Apple, Windows, Thomson Locations: Porte, Paris, France, States, Washington
That popularity, the company says, is why browser and phone makers have chosen Google as their default search engine through revenue sharing agreements. It will also hear from Apple's Senior Vice President of Services Eddy Cue and Mozilla CEO Mitchell Baker, Google's lawyer said. Following opening statements, the DOJ lawyer questioned its first witness, as it begins what's known as its "case-in-chief." But it's important browsers pick the right search default, Schmidtlein said, as Mozilla learned when it switched its default from Google to Yahoo in 2014. WATCH: DOJ takes on Google in antitrust lawsuit over Google Search
Persons: Jonathan Kanter, Kevin Dietsch, Sundar Pichai, Services Eddy, Mitchell Baker, Google's, Sridhar Ramaswamy, Neeva, Hal Varian, Ting Shen, Varian, Kenneth Dintzer, Dintzer, Ditzner, Patterson Belknap Webb, William Cavanaugh, Joan Braddi, Braddi, Siri, Cavanaugh, Kent Walker, Williams, Connolly's John Schmidtlein, Schmidtlein, Denelle Dixon, Apple Organizations: Antitrust, Department of Justice, Getty, Google, Colorado, Washington , D.C, Apple's, Services, Mozilla, DOJ, AGs, Google Inc, Bloomberg, Microsoft, Federal Trade Commission, Apple, Samsung, Branch, Global Affairs, Inc, Yahoo, TechCrunch, CNBC, YouTube Locations: Washington , DC, Washington ,, Snowflake, Colorado, Siri
Also being called anticompetitive are Google’s contracts to ensure that Android devices come with Google apps and services — including Google search — preinstalled, the Justice Department claimed. For Google’s opening statement, attorney John Schmidtlein said that Apple’s decision to make Google the default search engine in its Safari browser demonstrates how Google’s search engine is the superior product consumers prefer. The Google case “could not be more different” from the historic Microsoft litigation at the turn of the millennium, Schmidtlein continued. Google has previously said that consumers choose Google’s search engine because it is the best and that they prefer it, not because of anticompetitive practices. Google’s search business provides more than half of the $283 billion in revenue and $76 billion in net income Google’s parent company, Alphabet, recorded in 2022.
Persons: Sundar Pichai, Google’s, Kenneth Dintzer, ” Dintzer, John Schmidtlein, Apple, , Schmidtlein, Bing, General Merrick Garland, Anna Moneymaker, ” Schmidtlein, , Kent Walker, Ken Buck, Trump, Global Affairs Kent Walker, Biden, Amit Mehta, Mehta Organizations: CNN, Google, Justice Department, Microsoft, Apple, Samsung, DOJ, Netscape, Gmail, U.S, The Justice Department, Global Affairs, Court, District of Columbia, Eastern, of Locations: United States, Washington, Apple . WASHINGTON, DC, Washington ,, California , New York , Colorado, Virginia, Colorado, of Virginia
Apple execs lose bid to block testimony at Google antitrust trial
  + stars: | 2023-09-05 | by ( ) www.cnbc.com   time to read: +3 min
Three senior Apple executives have lost their bid to stop the U.S. Justice Department from calling them as witnesses in the government's upcoming trial accusing Alphabet's Google of abusing its search power. Cue oversees Apple Music, Apple TV and other services. The Justice Department declined to comment. Google and its lawyers have denied any wrongdoing in the case, one of two Justice Department antitrust lawsuits against Google. The case is United States v. Google, U.S. District Court for the District of Columbia, No.
Persons: Alphabet's, Eduardo Cue, John Giannandrea, Adrian Perica —, Judge Amit Mehta, Perica, John Schmidtlein, Mehta, Apple Organizations: Apple Computers, Apple, U.S . Justice, Washington , D.C, U.S, Companies, Cue, Apple Music, Google, Justice Department, District of Columbia, APM Locations: Silicon Valley, Cupertino , California, Washington ,, Mehta's court, United States, U.S
The prospective class action complaint, filed in 2021 by two members of the annual paid subscription service Amazon Prime, alleged Amazon was unlawfully "tying" the online sale of third-party products to the use of the company's "Fulfillment by Amazon" program. The lawsuit said Amazon's alleged anticompetitive fulfillment practices had harmed "hundreds of millions of its loyal customers." Amazon's attorneys argued that fulfillment services are sold not to consumers who buy products but to third-party businesses that are selling goods on the company's platform. The antitrust case against Amazon was among private and state actions alleging violations of competition law. The case is Angela Hogan et al v. Amazon.com Inc, U.S. District Court, Western District of Washington, No.
Mehta pressed him, for example, on if being dominant in search means that Google's search engine will improve faster than its competitors. In particular, he said, Google should not have made agreements with Apple that requires that Google be the default search engine. Google argued in court filings that the payments at issue are legal revenue-sharing deals and not illegal efforts to exclude rivals. Since this lawsuit was filed, Google has been hit with other antitrust complaints. The Justice Department filed a second lawsuit in January accusing the company of abusing its dominance of the digital advertising business.
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