Microsoft CEO Testifies About Google's Dominance In Online Search
Microsoft (MSFT) Chief Executive Officer (CEO) Satya Nadella has testified about Google's dominance in online search, saying the idea that there's choice when it comes to internet queries is“bogus.”
Nadella's comments were made as part of the U.S. Justice Department's antitrust trial against Alphabet (GOOGL), the parent company of Google.
The American government has accused Alphabet of paying billions of dollars a year to other tech firms, smartphone makers, and wireless internet providers to remain the default search engine on electronic devices worldwide.
Google has denied that it engages in anticompetitive practices, even as it acknowledges controlling 90% of online searches globally.
During his testimony, Nadella said that Alphabet could use its dominance in online search to gain exclusive rights to publishers' content to train its artificial intelligence (A.I.) tools and widen its current lead with the technology.
Nadella said he and other tech leaders view online search as among the toughest markets to crack, saying:“The distribution advantage Google has today doesn't go away.”
Microsoft has invested billions of dollars in ChatGPT maker OpenAI, using the technology to create a new version of its Bing search engine.
However, despite the addition of generative A.I., the Bing search engine continues to trail Google by a wide margin.
Nadella added that Microsoft has invested $100 billion U.S. in its search engine without achieving much progress.
Lawyers for Alphabet have argued that Bing is behind in online search because consumers simply prefer using Google.
The antitrust trial in Washington, D.C. is expected to last 10 weeks. The U.S. District Court Judge presiding over the trial could order a break-up of Google or other changes to its business practices.
Microsoft's stock has gained 34% this year and trades at $321.80 U.S. per share. Alphabet's stock has risen 51% year-to-date and trades at $134.17 U.S. a share.
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