The Bing-Google Debate: Defaults vs. Quality
Posted: 2023-10-03
By: dwirch
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In the recent US v. Google antitrust trial, Microsoft's Bing search engine's standing relative to Google took center stage. Notably, even Microsoft CEO Satya Nadella didn't challenge Bing's inferior status to Google. The underlying reasons for this disparity were at the heart of the trial discussions.
During his testimony, Nadella, donning a dark blue suit, explained his motivation to compete with Google in the search business: profits. "Search is by far the largest software category,” he emphasized. He asserted that Bing is profitable for Microsoft, even if it doesn't dominate the market.
A significant focus was on Google's exclusive deal to be the search provider on Apple devices. Nadella termed this as a potential "game-changer." He was so keen on the deal that he offered to forgo up to $15 billion annually, camouflage the Bing brand for Apple users, and respect Apple's privacy terms. Nadella stressed the importance of default settings in influencing user behavior.
Nadella believes that becoming Apple's primary search engine isn't about immediate profits. An increased user base means more searches and more data, facilitating continuous improvements, leading to more searches in a reinforcing cycle. However, the challenge lies in breaking into this cycle, which Google currently dominates.
Despite Microsoft's attempts, they haven't succeeded in becoming Apple's default search engine. Nadella suggested that Google's comprehensive service suite, including Gmail and YouTube, might dissuade Apple from changing defaults due to potential competitive reactions.
The trial delved deep into the potential future of search engines, especially in light of AI. Microsoft's partnership with OpenAI has revolutionized Bing, but AI's role might also fortify Google's lead. Nadella warned about exclusive data deals favoring Google, potentially sidelining other search engines.
In a riveting exchange, Google's lead counsel, John Schmidtlein, attributed Bing's inferiority to Microsoft's past mistakes, suggesting Google's success was due to superior execution. He highlighted Microsoft's bundling of Bing with Windows, arguing that even with this advantage, Google remains more popular among Windows users.
For Nadella, default settings play a pivotal role. Drawing parallels with Apple Maps' growth, he stressed that users rarely shift from defaults, emphasizing the importance of this setting in the overall user experience.
The core of the US v. Google case revolves around whether default settings or superior products dictate market success. Nadella staunchly believes in the former, while Google champions the latter. Judge Mehta's stance on this debate could determine the trial's outcome.
Wrapping up, both sides debated the true expanse of the search engine market, questioning its competitiveness and the role of platforms like Yelp, Tripadvisor, Amazon, and Facebook in the landscape.
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