Microsoft CEO Satya Nadella testified as a US Justice Department witness on Monday in a landmark antitrust case against Google parent company Alphabet. The Justice Department alleged that Google, which controls about 90% of the search market, abused its ubiquitous search engine dominance to stifle competition and innovation at the expense of consumers. The government argued that Google illegally paid $10 billion a year to smartphone makers like Apple, wireless carriers like AT&T and others to be the default search engine on its devices and to be at the top.
Here’s what Satya Nadella said to a packed courtroom in Washington, DC:
Nadella said it could never compete with the search engine giant, largely because of its deal with Apple.
“You can call it popular, but to me it’s influential,” Nadella told Google’s lawyers during tense cross-examination.
He said Google’s unfair practices led to its dominance as a search engine and frustrated his company’s software rival, Bing.
“We are one of the alternatives, but we are not the alternative,” Nadella said.
Nadella announced that Microsoft intends to hide the branding of its search engine “Bing” on Apple Inc.’s devices. To reach an agreement with the iPhone manufacturer. Nadella said acquiring this virtual space from Apple would be a “game changer.”
{{^userSubscribed}} {{/userSubscribed}} {{^userSubscribed}} {{/userSubscribed}} “Whoever they choose, they will make king.”
Microsoft’s CEO has complained that Google is locking up content with expensive exclusive deals with publishers as the tech giants compete for vast amounts of content needed to train artificial intelligence.
“When I meet with publishers now, they say Google is going to write this check, it’s exclusive and you have to match it,” he said.
Nadella said he now worries that Google could leverage its dominance in finding powerful content providers that are critical to training generative AI models.
“Despite my enthusiasm, I am very concerned that this vicious cycle could get worse,” Nadella said.
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