Nadella expressed concerns that Google’s dominance in online search is creating obstacles for competitors like Microsoft’s Bing. He argued that Google leverages its power to control publishers and advertisers, making it challenging for Bing to gain traction in the market. Despite Microsoft’s larger market capitalization, which stands at $2.38 trillion compared to Google’s $1.69 trillion, Nadella pointed out that Google’s dominance in online search is a significant hurdle.
“Everybody talks about the open web, but there is really the Google web,” Nadella remarked during his testimony. He went on to suggest that Google could potentially use its substantial advantage and resources to dominate the emerging artificial intelligence industry, an area where Microsoft has made strides with its ChatGPT.
This anti-trust trial is one of the most significant actions brought against a tech company by the Justice Department since Microsoft faced a similar trial about 25 years ago over the dominance of its Windows operating system. At the heart of the government’s case is the allegation that Google extends its monopoly in online search by paying to be the default option on popular browsers, including Apple’s Safari, and securing a place on the home screens of smartphones.
One of the most visible demonstrations of Google’s search dominance is its multibillion-dollar agreement with Apple, making Google search the default option on iPhones, which are prevalent in the US market. Google’s argument that users can switch to a different search engine if they wish was dismissed by Nadella as “bogus,” as he claimed that users rarely change their default search engine, stating, “You get up in the morning, you brush your teeth and you search on Google.”
Microsoft and Google have been engaged in fierce competition across various tech sectors for over two decades, dating back to a time before Nadella and Pichai assumed their leadership roles. Artificial intelligence is the latest battleground, and Nadella expressed his concerns about Google using its search dominance to catch up and surpass Microsoft in this crucial field.”Despite my enthusiasm that there is a new angle with A.I., I worry a lot that this vicious cycle that I’m trapped in could get even more vicious,” Nadella commented. Sundar Pichai is also expected to testify in the coming days, leading some to describe this trial as a “big tech cage fight.”While Nadella and Pichai are not known to be close friends, they have maintained a courteous public relationship, with occasional social media exchanges. Notably, when Satya Nadella was appointed Microsoft CEO in 2014, Pichai, then leading Google’s Android division, was among the contenders to succeed him. Nadella got the nod, and a year later, Pichai became Google’s CEO. Their public exchanges at the time were marked by mutual respect and congratulations, reflecting a degree of camaraderie within the competitive tech landscape.
(The article was originally published in TOI)
