DuckDuckGo CEO Reveals Failed Contract Talks with Apple Over Google Payments

In a recent antitrust trial involving Google, newly unsealed transcripts revealed that privacy-oriented search engine DuckDuckGo had engaged in talks with Apple regarding a potential contract. However, the discussions failed as Apple was hesitant to give up the substantial payments it receives from Google. Gabriel Weinberg, CEO and founder of DuckDuckGo, testified about the impact of Google’s annual $10 billion payments to smartphone makers and others to maintain its search engine as the default option.

The redacted transcript disclosed that DuckDuckGo had initially struck a deal with Apple in 2014 to be featured as an option on Apple devices. Subsequently, DuckDuckGo began pushing for its search engine to be the default choice for users who preferred privacy mode, limiting data collection. Weinberg stated that Apple appeared “really interested” in 2016, and meetings between the two companies took place in 2017 and 2018 to discuss the potential shift. However, concerns were raised about Apple’s distribution agreements with Google, which may have prohibited the change.

Weinberg argued that the potential deal fell through in 2019 due to the Google payments. Apple’s John Giannandrea, responsible for machine learning and AI strategy, also testified that Apple had considered using Bing as a default search engine instead of Google. However, Giannandrea opposed the idea due to Bing’s lower quality search results.

The Justice Department has previously revealed that Google pays approximately $10 billion annually to Apple, other smartphone makers, and various entities to secure its position as the default search engine. This dominance in the search market has significantly contributed to Google’s success in the advertising industry.

While DuckDuckGo currently holds about 2.5% of the search market, the failed contract talks with Apple highlight the challenges faced by alternative search engines in breaking Google’s stronghold. The transcripts shed light on the complex dynamics between tech giants and their influence on default search engine choices.

As the trial continues, the revelations from DuckDuckGo’s CEO provide valuable insights into the competitive landscape of the search engine market and the impact of Google’s financial arrangements with major players in the industry.