Apple and Microsoft's Potential Deal on Bing as iPhone's Search Engine in 2020

In 2020, tech giants Apple and Microsoft were at the heart of a significant discussion that could have reshaped the default search engine landscape for millions of iPhone users. At the time, Microsoft MSFT, a leading American multinational technology company known for its software and hardware products, engaged in talks with Apple, suggesting that Bing could replace Google as the default search engine on Apple's devices.

Microsoft's Attempt to Challenge Google's Dominance

Microsoft, which is counted among the Big Five of the U.S. information technology industry, was exploring the opportunity to leverage its search engine, Bing, by potentially taking over the coveted default search engine spot on Apple's Safari browser, and thereby also influencing search results on other Apple services like Siri and Spotlight. This move was seen as a strategic attempt to challenge the dominance of Alphabet Inc.'s Google GOOG, which is part of one of the most valuable technology conglomerates in the world.

The History of Apple's Search Partnerships

Before this 2020 discussion, Apple and Microsoft had previous agreements ranging from 2013 to 2017, during which Bing powered the search results for Siri and Spotlight. In 2016, negotiations for Bing to become the default search engine for Safari on Apple's platforms were explored, which coincided with Apple's discussions to renew a lucrative deal with Google—in which Google shared ad revenue from searches made on Apple devices.

Eventually, the decision fell in Google's favor as Apple chose to not only continue but also expand its partnership with Google, extending beyond traditional searches to include integration with the Siri and Spotlight features.

Factors Influencing the Decision

Despite the revival of talks between Microsoft and Apple in 2020, the deal never came to fruition. A primary stumbling block was the substantial revenue Apple reaped from Google, likening the switch to Bing as a financially unattractive move. Furthermore, there were concerns regarding Bing's competitiveness against Google in terms of quality and capabilities, which ultimately sealed the decision for Apple to stick with Google as the default search engine.

Apple, Microsoft, Investment