UK regulators take aim at Apple's search engine deal with Google

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The payments by Alphabet Inc's Google to Apple Inc to be the default search engine on Apple's Safari web browser create 'a significant barrier to ...

The payments by Alphabet Inc's Google to Apple Inc to be the default search engine on Apple's Safari web browser create"a significant barrier to entry and expansion" for Google's rivals in the search engine market, the UK markets regulator said in a report released on Wednesday.

FILE PHOTO: A 3D printed Google logo is placed on the Apple Macbook in this illustration taken April 12, 2020. REUTERS/Dado Ruvic/IllustrationREUTERS: The payments by Alphabet Inc's Google to Apple Inc to be the default search engine on Apple's Safari web browser create"a significant barrier to entry and expansion" for Google's rivals in the search engine market, the UK markets regulator said in a report released on Wednesday.

Apple received the"substantial majority" of the 1.2 billion pounds that Google paid to be the default search engine on a variety of devices in the United Kingdom in 2019, according to the report.The U.K. Competition and Markets Authority, in its final report investigating online platforms and digital advertising, said the arrangements between Apple and Google create"a significant barrier to entry and expansion" for Google's rivals in the search engine market.

"Given the impact of preinstallations and defaults on mobile devices and Apple’s significant market share, it is our view that Apple’s existing arrangements with Google create a significant barrier to entry and expansion for rivals affecting competition between search engines on mobiles," the regulators wrote in the report.

Apple told the regulators that monetization restrictions would be"very costly," according to the report.

 

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