Microsoft CEO Accuses Google of Antitrust Violations, Criticizes Apple Agreements

Currently underway is the first significant antitrust trial in the United States since the Microsoft case in 1998. Its purpose is to ascertain whether Google’s level of control over its customers is preventing them from choosing alternative competitors and emerging startup rivals. On Monday, Satya Nadella, the CEO of Microsoft, appeared as the key witness for the US government. During his testimony, Nadella emphasized that Google’s dominance, especially in the Search sector, has been facilitated by numerous agreements with Apple and other technology companies.

Highlighting Google search as the “largest software category of all,” Nadella explained why Microsoft is competing with Google in this space with its Bing search engine. “I thought of Windows and Office as attractive businesses until I saw search,” he added, explaining that Bing didn’t need to be at the top of the market to make a profit.

Satya Nadella testifies in the Google cartel case

Nadella further highlighted Google’s agreements with Apple, where the former became the default search provider on all Apple devices. He said if Microsoft got the chance to become the default in Safari, “that would be a game changer.” Microsoft’s CEO was even willing to give Apple all the financial benefits of the deal and lose up to $15 billion a year just to get the deal. “Default settings are the only thing that matters in terms of changing user behavior,” he said.

Without naming Google directly, Nadella also cited “problematic” behavior by tech companies that enter into exclusive deals with major content providers that are a big part of people’s lives online.

“When I meet with publishers now, they say Google writes this check, and it’s exclusive, and you have to match it,” Nadella said.

He also called the notion that user behavior is easy to change “wrong.” “We are one of the options, but we are not the default,” he added.

Nadella also looked to the future, expressing concern that a similar battle between the two companies could arise over artificial intelligence, which would inevitably become excited about winning the market. “Despite my excitement that there’s a new perspective with A.I., I’m very concerned that this vicious cycle I’m trapped in could get even worse,” he said.

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