Apple profits more from Bing existing than Bing does, claims Microsoft exec

Zac Hall | Sep 27 2023 - 9:21 am PT

While Alphabet is busy trying to convince the government that Google doesn’t stifle search innovation, Microsoft is making an interesting point about Bing and Apple. In Microsoft’s view, Bing benefits Apple financially more than it benefits Microsoft.

Top comment by KJ705

Liked by 4 people

Microsoft says it can’t afford to invest in Bing without assurances that it could reach a significant number of users.

Dude...that's nonsensical. They just invested $10 billion in AI, part of which is a tie-in to Bing. If Microsoft intends to compete with Google on search, then the onus is on Microsoft to actually compete with Bing, not on Apple to facilitate. Buying space on iOS as the default IS the investment that Microsoft isn't making according to Microsoft itself. The fact that Apple isn't cutting Microsoft out of the opportunity is an example that Apple isn't actually being non-competitive.

I don't have any problem with actual antitrust investigations or non-competitive investigations. But what we are seeing now is that these are being misused (and not just against Apple) in very obvious ways that deserve harsh criticism.

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Mikhail Parakhin, who oversees ads and web services at Microsoft, testified this week that Apple sees more profit from Bing existing than Bing itself does. Bloomberg reported on the testimony from the antitrust trial:

“Apple is making more money on Bing existing than Bing does,” Mikhail Parakhin, the head of Microsoft’s advertising and web services, testified during the US government’s antitrust trial against Google in Washington. “We are always trying to convince Apple to use our search engine.”

Parakhin adds that Microsoft’s most recent attempt to convince Apple to default to Bing search over Google search occurred in 2021. That’s when Apple and Microsoft met to discuss the prospect, but obviously nothing came of it.

Microsoft’s argument is that Apple is able to leverage Bing as a threat to Alphabet when renewing its contract to default to Google search. Microsoft says it can’t afford to invest in Bing without assurances that it could reach a significant number of users. Meanwhile, Apple is obligated to defend its Google search contract as part of the agreement.

Apple defaulted to Bing for Siri image searches at one time, but Bing has never been the default search engine for Safari. Users are able to change the default search engine, however.