Jakarta, CNBC Indonesia – Google CEO Sundar Pichai acknowledged the importance of making Google Search his default software to maintain user loyalty.
This is an important point in the US antitrust lawsuit regarding the billions of dollars Google paid to become the default search engine on laptops and cellphones.
Google, which started paying for default status on devices in 2005, met these demands.
“We clearly made an agreement for the default placement,” said Pichai, quoted from ReutersTuesday (31/10/2023).
Under cross-examination, Pichai said the annual payments worth tens of billions were aimed at maintaining default status. “We really see the value.”
The US government launched an investigation to determine whether Google acted illegally to maintain its dominance over search engines and digital advertising.
If the government wins, the company will be forced to abandon some of the business practices that have helped it stay on top. This will change the internet completely, considering that Google plays an important role in shaping internet culture in the world.
In his testimony, Pichai showed examples where the company asked Apple, telecommunications providers and smartphone makers to make its search engine the default search engine on their devices in exchange for revenue sharing agreements.
“We pay for default exclusivity on a device-by-device basis,” Pichai said when questioned by the Justice Department.
A Justice Department lawyer asked Pichai about 2007 discussions among Google executives including Pichai, before he became chief executive, about Apple’s request to let users choose their search engine on a new version of its Safari browser.
A document at the time said 75% of people did not change the default and stated “defaults have a powerful impact.”
Pichai was also accused of carrying out illegal practices to beat rival browser Microsoft’s Internet Explorer.
“The browser market at that time was stagnant,” Pichai said of the period before Google launched its Chrome browser, which competed with Microsoft products.
“They (Microsoft) are not very motivated to improve the browser,” he concluded.
[Gambas:Video CNBC]
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Originally posted 2023-10-31 14:40:00.