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Apple is reportedly planning a significant update to its Safari web browser by integrating AI-powered search options, a move that could disrupt Google\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\’s stronghold in the search advertising market.
During testimony in an antitrust case against Alphabet Inc., Apple executive Eddy Cue revealed that the company is \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\”actively looking at\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\” reshaping Safari. This includes incorporating AI search providers like OpenAI and Perplexity AI as future search options.
The announcement had immediate market implications: Alphabet\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\’s shares fell by 7.3%, erasing approximately $150 billion from its market value. Apple\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\’s stock also declined by 1.1% following Cue\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\’s testimony. Cue noted that searches on Safari decreased for the first time last month, attributing the decline to users increasingly turning to AI-driven alternatives.
Currently, Google pays Apple around $20 billion annually to remain the default search engine on Safari, accounting for about 36% of Google\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\’s search advertising revenue generated through the browser. Analysts warn that losing this exclusivity could have severe consequences for Google, as advertisers might shift their budgets to alternative platforms if viable AI-based search options emerge.
In response to the growing competition, Google has introduced an \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\”AI mode\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\” on its search page to retain users. It is in discussions with Apple to integrate its Gemini AI technology into new iPhones.
Apple\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\’s move to enhance Safari with AI capabilities reflects a broader strategy to reduce dependence on Google and offer users more personalized and intelligent search experiences. This development signals a potential shift in user behavior and the competitive landscape of online search.
Nevertheless, the Apple executive’s remarks point to a significant transformation brewing in the search industry that could challenge Google\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\’s longstanding dominance. As the primary platform for digital advertisers, Google now faces heightened scrutiny from U.S. antitrust regulators, who have filed two major lawsuits to curb its control.
Currently, Google holds the prized position of default search engine on Apple’s Safari browser, a status for which it reportedly pays around $20 billion annually—approximately 36% of the search revenue it earns through Safari, according to analysts.
Among the measures proposed by the U.S. Department of Justice to dismantle Google’s grip on the market is a ban on such payments that secure default search status on major browsers.
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logics=\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\”\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\”]Nevertheless, the Apple executive’s remarks point to a major transformation brewing in the search industry—one that could challenge Google\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\’s longstanding dominance. 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logics=\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\”\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\”]Your Content Goes HereMany advertisers rely almost exclusively on Google for their search advertising due to its dominant market share—nearly 90%, making it effectively a monopoly,\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\” said Luria. \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\”If credible alternatives emerged, a significant portion of those advertising budgets could shift away from Google.\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\”
However, Google isn\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\’t sitting idle.
Despite being seen as trailing in the AI race after ChatGPT\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\’s high-profile debut in late 2022, the tech giant has invested heavily in its artificial intelligence initiatives, leveraging its massive data resources. Earlier this year, Google introduced an “AI mode” on its search page, aiming to keep users from migrating to other AI-based search tools.
The company also rolled out AI Overviews—brief summaries displayed above standard web links in response to search queries—to users in over 100 countries. Ads were added to this feature, helping drive more revenue from its core Search business.
At a recent antitrust trial, CEO Sundar Pichai revealed Google is working toward a mid-year agreement with Apple to integrate its Gemini AI into upcoming iPhones.
Meanwhile, Apple appears to be moving in a different direction. According to Bloomberg, Apple executive Eddy Cue stated that the company intends to introduce AI-based search options, such as OpenAI and Perplexity AI, within Safari in the future.
“This move highlights how advanced generative search platforms like ChatGPT and Perplexity have become,” said Yory Wurmser, principal analyst for advertising, media, and technology at eMarketer.
Wurmser added that Google’s willingness to spend tens of billions to remain the default search engine underlines the strategic importance of such partnerships. For context, ChatGPT recently reported over 1 billion weekly web searches and had surpassed 400 million weekly active users as of February.[/fusion_text][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]
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