Eddy Cue, senior vice chairman of web software and services at Apple Inc., speaks during a keynote session on the South By Southwest (SXSW) conference in Austin, Texas, U.S., on Monday, March 12, 2018.
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Alphabet and Apple shares sank Wednesday after Eddy Cue, Apple’s services chief, said he believes that AI search engines like google and yahoo will eventually replace standard search engines like google and yahoo similar to Google, in keeping with Bloomberg.
Cue said he expects so as to add artificial intelligence services from OpenAI, Perplexity and Anthropic as search options in Apple’s Safari browser in the long run, in keeping with the report.
The Apple executive was testifying in a federal court in Washington as a part of the Justice Department’s lawsuit against Alphabet. Last 12 months, a U.S. District Court judge ruled that Google has illegally held a monopoly in the web search market, and now the judge is trying to determine what penalties or actions must be taken against the search company.
One major deal with the case is Google’s practice of paying platform providers similar to Apple to change into the default search engine on their platform.
The lawsuit and any potential remedies threaten Google’s lucrative promoting business, and Alphabet shares sank greater than 7% on Wednesday.
However the lawsuit also threatens to ensnare Apple. Google pays the iPhone maker billions of dollars per 12 months — as much as $20 billion per 12 months back in 2022, in keeping with testimony within the trial — to be the default search engine on iPhones. It’s lucrative for Apple and a beneficial way for Google to get more search volume and users. Apple shares fell 2% during trading Wednesday.
Cue’s comments forged doubt on the long-term stability of the connection. Cue said he believes Google should remain the default search option on Safari, saying he has lost sleep over the potential for losing the revenue share from the 2 firms’ agreement, in keeping with the report.
The Apple executive said searches on Safari declined for the primary time in April, which Cue attributed to the rise in people using AI, in keeping with the report.
Correction: Eddy Cue testified on the remedies trial that has followed a judge’s ruling that Google held a monopoly in its core market of web search. A previous version of this story listed the wrong Google antitrust case.
WATCH: Apple says searches in Google browser fell for the primary time in April
