Alphabet, Google’s parent company, announced its third-quarter results, in which the company returned to earnings and earnings growth, with figures significantly exceeding Wall Street analysts’ expectations. This certainly delighted investors, but during a conference call, CEO Sundar Pichai had to comment on a recent US Department of Justice antitrust lawsuit.
Analysts and investors are worried about the potential repercussions of this case, and one specifically asked if Google’s loss of an exclusive contract with Apple could be a big problem. Mr. Pichai also tried to allay fears that the trial could plunge Google into turmoil, as it did with Microsoft in the 90s.
Sundar Pichai noted among others: “Regarding the Justice Department lawsuit, we believe that our products create significant benefits for consumers, and we will state our case with confidence. Our company remains focused on continuing to create a search product that people love and appreciate. ”
But analysts nevertheless asked several questions about the lawsuit: in the deal between the two companies, Apple receives more than $ 8 billion for using Google services as a standard search engine. This contract can now be lost. “Most of our partners choose us because we are the best provider of search services, – answered Mr. Pichai rather vaguely. – Users believe that we have the highest search quality, and therefore there is a natural demand for it. And we believe in investing in our experience across all platforms, so we’re definitely committed to being able to serve users everywhere, and we’re really focused on that. “
Regarding the search for points of contact with the US Department of Justice, the chief noted: “Verification is not new to us, and in a sense it is not sector-wide and therefore not surprising. We will interact constructively where possible, and, as we have done in the past, we are confident in the benefits we bring to users, and we will make our case. ”
When Microsoft struggled in the 1990s with pressure from the US Department of Justice, the company was distracted from its business, allowing new companies like Google to succeed in areas such as the mobile market.
During Apple’s teleconference on Thursday, Apple CEO Tim Cook was also asked about the prospects for a lucrative search deal with Google, which analysts say brings Apple $ 8-12 billion a year. The Apple chief downplayed the deal and the likelihood of imminent problems: “I have no idea how things will go with the suit of the Ministry of Justice, but I think that it is still a long way to make a decision on it.”…
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