Apple’s plans to add AI-powered search options to its Safari browser are a big blow to Google, whose lucrative advertising business relies significantly on iPhone customers using its search engine.
The news slammed shares of Google-parent Alphabet, which closed down 7.3 percent, wiping off roughly $150 billion from its market value.
The iPhone maker was “actively looking at” reshaping Safari, a source familiar with the matter told Reuters, citing Apple executive Eddy Cue who was offering testimony at an antitrust case on Wednesday over Google’s dominance in online search.
Cue said searches on Safari fell for the first time last month due to users increasingly turning to AI, according to the source. Apple stock closed down 1.1 percent.
Google said that it continued to see growth in the overall number of search queries, including “total queries coming from Apple’s devices and platforms,” according to a statement posted on the company’s blog.
“People are seeing that Google Search is more useful for more of their queries — and they’re accessing it for new things and in new ways,” the company wrote.
Google cited voice and visual search features as contributors to total search volume growth. It was unclear whether Cue was using the same basis of comparison in his testimony when analizing types of searches.
Still, the Apple executive’s comments suggests that a seismic shift in search is likely underway, threatening Google’s dominant search business — a go-to advertising destination for marketers that has now become a target for US antitrust regulators, which filed two major lawsuits against the company.
Google is the default search engine on Apple’s browser, a coveted position for which it pays the iPhone maker roughly $20 billion a year, or about 36 percent of its search advertising revenue generated through the Safari browser, analysts have estimated.
Banning Google from paying companies to be the default search engine is among the remedies that the US Justice Department has proposed to break up its dominance in online search.
“The loss of exclusivity at Apple should have very severe consequences for Google even if there are no further measures,” D.A. Davidson analyst Gil Luria said.
“Many advertisers have all of their search advertising with Google because it is practically a monopoly with almost 90 percent share. If there were other viable alternatives for search, many advertisers could move much of their ad budgets away from Google,” Luria said.
Google is not defenseless.
Written off as an also-ran in the AI race by critics after ChatGPT’s buzzy launch in late 2022, Google has reached into its deep pockets to fund its AI efforts and leverage its vast data trove.
The company introduced an “AI mode” on its search page earlier this year, looking to retain its millions of users from going away to other AI models.
It recently expanded AI Overviews — summaries that appear atop the traditional hyperlinks to relevant webpages on a search query — for users in more than 100 countries, and added advertisements to feature, boosting Search ad sales.
CEO Sundar Pichai said in a testimony at an antitrust trial last month that Google hopes to enter an agreement with Apple by the middle of this year to include its Gemini AI technology on new phones.
Apple’s Cue on Wednesday also said the company would add AI search providers, including OpenAI and Perplexity AI, as search options in the future, Bloomberg reported.
“(Apple’s plan) also shows how far generative search sites, such as ChatGPT and Perplexity have come,” said Yory Wurmser, principal analyst for advertising, media & technology at eMarketer.
That Google is willing to pay tens of billions of dollars to remain the default search engine shows how crucial the agreements are, Wurmser said.
For instance, ChatGPT in April reported seeing over 1 billion weekly web searches for its search feature. It has more than 400 million weekly active users, as of February
Apple’s plan to offer AI search options on Safari a blow to Google dominance
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Apple’s plan to offer AI search options on Safari a blow to Google dominance
- Apple could add OpenAI, Perplexity as future search options
- The news slammed shares of Google-parent Alphabet, wiping off roughly $150 billion from its market value
Foreign press group opposes further Gaza access delay
- Since the beginning of the Gaza war, Israeli authorities have prevented foreign journalists from independently entering the Strip
JERUSALEM: The Foreign Press Association in Jerusalem on Thursday said it “firmly opposed” another delay to the Israeli supreme court’s decision on its petition demanding independent access to the Gaza Strip.
Since the start of the Gaza war in October 2023 following Palestinian militant group Hamas’s unprecedented attack, Israeli authorities have prevented foreign journalists from independently entering the devastated territory.
Israel has instead allowed, on a case-by-case basis, a handful of reporters to accompany its troops into the Palestinian territory under Israeli blockade.
On November 24, the supreme court granted the state a further 10 days to respond to the appeal, but on Thursday extended the deadline again to December 21, giving Israel time to present a plan on foreign media access to Gaza.
“This is an urgent appeal. Continuously preventing coverage — every minute, every hour, every day — seriously undermines the ability of international media to carry out their mission, and infringes on the fundamental rights of billions of users,” the FPA said in a statement.
The association said it was the ninth time the court agreed to grant an extension, and believed it was “clear that the state’s goal is to delay filing their preliminary response as much as possible.”
The FPA represents hundreds of foreign journalists working for international news organizations in Israel and the Palestinian territories.
