Being the default search engine attracts more people, helping Google grow its search ads business. The tech giant made more than $162 billion from its search business last year, according to Oberlo.
The DOJ disclosed that Apple had plans to provide people with a choice screen, allowing them to pick between Google and Yahoo as their preferred search engine. However, Google rejected Apple’s proposition, it was revealed in the case, responding with the statement, “No default placement, no revenue share,” according to an email.
Google’s search ads revenue up for grabs
A realistic outcome is that the judge could deem it unlawful for Google to pay Apple to have its search engine as the default in Safari, according to Eric Posner, professor of law at the University of Chicago and former counsel to the DOJ’s Jonathan Kanter—the architect of the case against Google.
If that happens, Google will lose its search spend from marketers, the industry executive said.
Retail giants spend up to $50 million annually on paid search in Google Ads, according to Wordstream, while small and medium-size businesses spend anywhere between $12,000 to $120,000 per year.
Search ads are “mandatory” in any ad campaign and cannot be replaced by other digital ads offerings like Facebook ads, said Joshua Lowcock, global chief media officer at UM, in his court testimony last week, wrote Yosef Weitzman in Big Tech on Trial. This statement contradicts claims made by Google in court.
The nullifying of the deal would require Apple to offer people a more explicit menu of search engine options, helping them make an informed choice, Posner said this week at Impact, adMarketplace’s annual search ads event in New York City.
During the trial, both Apple and Google argued that changing the default search engine is a straightforward process, with Apple’s Eddy Cue providing a step-by-step process during his testimony. The DOJ and other parties countered that this switch is difficult and irrelevant, per the Verge.
Separating search ads from its search engine
Another outcome, according to Adam Epstein, president and COO of adMarketplace, is the breaking up and selling off of Google’s search ads business from its search engine.
This would let competing advertisers vie for space, fostering increased competition in search ads, he said.
“Apple—the second most powerful hub in the world—have never been able to sell a single click from their search result page,” said Epstein. “This could potentially give Apple the ability to sell ad space to marketers and establish pricing based on market dynamics.”
Marketers can redeem damages
Should the court issue a judgment that’s not in favor of Google, marketers—and the general public—can pursue what Posner termed as “equitable remedies.”
“There’s very likely to be follow-on private litigation by people who have been harmed by Google’s behavior, which may be you guys, where you can ask for damages or how much money you’ve lost as a result of Google’s anti-competitive practices,” said Posner.