Eddy Cue Explains Three Reasons Apple Has No Plans to Create a Search Engine

The $20 billion agreement between Apple and Google, which designates Google as the default search engine on iPhones, is currently facing scrutiny. As highlighted earlier today, the U.S. Department of Justice is pressing on with its case regarding Google’s market domination in the search sector, making the lucrative deal with Apple a key point of discussion.

This week, a new court document noticed by Reuters reveals insights from Eddy Cue, Apple’s Senior Vice President of Services, detailing why Apple is unlikely to create its own search engine.

Cue argues that there is a misconception within the court suggesting that potential remedies in the Google case might lead Apple to develop its own search engine or engage in the Search Text Ad market to rival Google. Cue asserts, however, that “that assumption is incorrect.”

Here are Cue’s points explaining why Apple will not pursue building a search engine:

1. “Apple prioritizes other areas for growth. The creation of a search engine would necessitate reallocating both capital and personnel since establishing a search engine would demand billions of dollars and several years of development.”
2. “The search landscape is rapidly changing due to advances in Artificial Intelligence. Consequently, investing significant resources into building a search engine is financially precarious.”
3. “An effective search engine would require the development of an advertising platform for targeted ads, which is not a fundamental part of Apple’s business. Apple lacks the necessary volume of specialized talent and robust operational infrastructure required to successfully manage a search advertising venture. While Apple has some niche advertising mechanisms, like those on the App Store, search advertising lies outside its core capabilities. Additionally, establishing a search advertising business would need to align with Apple’s enduring commitments to privacy.”

This week, Reuters also reported that Apple “has expressed interest in participating in Google’s upcoming U.S. antitrust trial related to online search.”

“Google can no longer adequately represent Apple’s interests: Google must now defend against a broad initiative to dismantle its business divisions,” Apple stated in a legal filing.