Microsoft CEO Satya Nadella conceded that Google’s search engine outperforms Bing, with the ensuing discussions probing the root of this disparity.
The internet is really the “Google web,” Nadella told the packed courtroom, adding that Google could now use its advantage and scale to build tools to dominate the emerging artificial intelligence industry.
Nadella, appearing in a dark blue suit, faced thorough questioning from Department of Justice lawyer Adam Severt.
Although Bing is not as dominant in the market, Nadella highlighted its profitability for Microsoft and labeled the search engine industry as exceedingly lucrative, outpacing even the prospects he once saw in Windows and Office.
The conversations notably delved into Google’s billion-dollar exclusive search provider agreement with Apple, with Nadella terming such a deal a “game-changer” should Microsoft secure it.
He also expressed a willingness to conceal the Bing brand and comply with Apple’s privacy demands to gain access to more user data, emphasizing the paramount importance of being the default search engine to modify user behavior.
Nadella suggested that such a partnership wouldn’t primarily be about immediate financial gains but to boost Bing’s “query flow” through increased distribution.
The CEO repeatedly said he believes that defaults matter in a big way, no matter what the Windows market share numbers say.
Asked about the idea that users can easily switch search engines, he said “My only argument against that is that users don’t switch.”
His best example is Apple Maps, which started out disastrously bad but has still gained market share in the last decade because it’s preinstalled on every iPhone. “People use it — it’s the default,” he added.
