(Bloomberg) -- Microsoft Corp. discussed selling its Bing search engine
to Apple Inc. around 2020, a deal that would have replaced Google as
the default option on the iPhone maker’s devices, according to people
with knowledge of the matter.

Executives from Microsoft met with Apple’s services chief, Eddy Cue,
who brokered the current search engine relationship with Alphabet
Inc.’s Google, to discuss the possibility of acquiring Bing, said the
people, who asked not to be identified because the situation was
confidential. The talks were exploratory and never reached an advanced
stage, they said.

Over the years, the companies have discussed other ways to make Bing
the preferred option, though Apple ultimately stuck with Google. Those
talks have taken on fresh significance now that the US Department of
Justice is in a legal fight with Google to show that the company abused
its search dominance. Apple’s relationship with Google, which pays
billions of dollars to give its search engine a prime spot in the
iPhone and other devices, is central to the case.

Representatives from Microsoft and Apple declined to comment.

Apple and Microsoft are now embroiled in the government’s suit against
Google, with executives from both companies testifying at the ongoing
trial. The Justice Department is using the Apple deal as evidence that
Google unfairly dominates the search market. In testimony earlier this
week, Apple’s Cue pushed back on that assertion, saying his company
uses Google because it’s the best search option available.

Apple and Google struck their first search engine accord in 2002, ahead
of Apple releasing its first Mac web browser. Over time, the agreement
expanded to Apple’s new devices, most notably the iPhone. By 2020,
Apple was collecting $4 billion to $7 billion annually from the
arrangement, according to the DOJ.

The agreement covers the Safari web browser for the iPhone, iPad and
Mac, and the Cupertino, California-based company gets a percentage of
the revenue that Google makes from searches in the Apple browser.

The money generated by the Google deal was a key reason why Apple
declined acquiring Bing, according to the people. The company also had
concerns about Bing’s ability to compete with Google in quality and
capabilities, they said.

Cue implied that Bing’s technology was inferior to Google’s, saying
that he doesn’t “know what we would have done” if negotiations with
Google ever fell apart.

If Apple had ultimately purchased Bing, it’s unlikely that the company
would have simply integrated the brand into its platform. With past
acquisitions, Apple has bought underlying technology and resources in
order to build a new feature.

In his testimony, Cue stressed that Apple sees no need to develop its
own search tool because Google clearly is the best option. That differs
from the company’s approach in other areas. It competes with Google in
mapping software and voice assistants, as well as operating systems for
phones and computers.

https://finance.yahoo.com/news/microsoft-discussed-selling-bing-apple-213812026.html

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