Google has used unfair tactics to stymie Microsoft’s MSFT increase green up pointing triangle Bing search engine, according to Microsoft CEO Satya Nadella, who testified Monday in the landmark US antitrust case against Google, adding that there may be limits to how much new artificial-intelligence applications can reshape the market.
In a packed courtroom in Washington, Nadella backed up the Justice Department’s theory that Google, a subsidiary of parent company Alphabet GOOG increase green up pointing triangle, cemented its dominance in internet search through agreements with Apple AAPL increase green up pointing triangle that made Google’s search engine the default on Apple’s Safari web browser.
As a result of these default agreements, “you get up in the morning, brush your teeth, and search on Google,” according to Nadella. “With that level of habit forming, the only way to change is by changing defaults.”
According to Nadella, Microsoft is locked in a “vicious cycle” in which Google utilizes its almost 90% market dominance to constantly enhance its search results and boost its profit line, which perpetuates its monopoly. The idea that there is actual competition in the search engine business is “bogus,” according to Nadella, who described Google’s partnership with Apple as a “fantastic, simple oligopolistic arrangement.”
The Justice Department called Nadella as a witness during the third week of the trial, which may run 10 weeks. For roughly an hour, Nadella was questioned by Justice Department lawyer Adam Severt.
U.S. District Judge Amit Mehta is presiding over the nonjury trial and has the authority to dissolve Google or mandate other corporate reforms.
Last Monday, advocacy groups chastised Mehta, an Obama appointment, for allowing Apple officials to speak primarily behind closed doors since their testimony contained confidential business information.
Lawyers representing both parties indicated Nadella’s evidence would be accessible to the public, indicating that Mehta’s stance on public access had shifted.
At one point, the judge interjected, questioning Nadella on whether a firm might employ artificial intelligence innovation to steal market share from Google.
Nadella stated that Silicon Valley regards internet search as “the biggest no-fly zone of all”—that is, the most difficult industry to break into—and that there are limits to how much artificial intelligence can transform the market as it now stands.
Microsoft has invested billions in OpenAI, the creator of ChatGPT, and leveraged the company’s technology to produce a new version of Bing that can have extended discussions in February. At the time, Nadella referred to the event as a “new day” in internet search.
In his testimony on Monday, Nadella hinted that he may have been excessively optimistic about ChatGPT’s potential.
The Justice Department’s lawsuit, the first significant antitrust trial since the Microsoft proceedings in the late 1990s, has offered insight into Google’s strategies for gaining a monopoly in the search industry.
According to the government, Google leveraged distribution agreements with Apple and other phone providers to hinder competition and deprive people of options. Google has stated that it creates the greatest search engine and wins contracts through a competitive procedure.
