Apple's Safari Shake-Up Threatens Google's Search Empire: All You Need To Know
Move to add AI-driven search options could disrupt $20-billion Google-Apple deal and upend ad dominance.
Apple is exploring a major transformation of its Safari browser, and the move could redefine how billions interact with the internet. At the heart of this shift is Apple’s intent to integrate artificial intelligence-powered search options into Safari, potentially breaking Google’s long-standing dominance in mobile web search.
The development comes amid growing regulatory scrutiny of Google’s monopoly in search. A source familiar with the matter told Reuters that Apple executive Eddy Cue, while testifying in an ongoing antitrust trial, said the company was "actively looking at" reshaping Safari’s search experience. Cue pointed out that searches via Safari actually declined last month, as users increasingly turned to AI tools instead — a signal of changing user behaviour.
This apparent pivot rattled markets. Alphabet, Google’s parent company, saw its shares tumble by 7.3%, erasing nearly $150 billion in market value in a single day. Apple also saw a dip, closing 1.1% lower.
Billions at Stake in Apple-Google Search Deal
Google currently pays Apple an estimated $20 billion annually to remain the default search engine on Safari — a deal that accounts for about 36% of Google’s ad revenue generated through Apple devices. The arrangement is central to Google’s business model, given the iPhone’s massive global user base.
“The loss of exclusivity at Apple should have very severe consequences for Google even if there are no further measures,” said D.A. Davidson analyst Gil Luria. He added, “Many advertisers have all of their search advertising with Google because it is practically a monopoly with almost 90% share. If there were other viable alternatives for search, many advertisers could move much of their ad budgets away from Google.”
The U.S. Department of Justice is also pushing to ban such exclusivity deals as part of its proposed remedies in ongoing antitrust litigation.
Google Scrambles to Fortify Its AI Defenses
Even as Apple flirts with AI alternatives like OpenAI and Perplexity AI — which Eddy Cue confirmed could be added as future search options — Google is not standing still. The tech giant has responded to the AI challenge by ramping up its own generative tools. Its “AI mode” and the expansion of AI Overviews, now available in over 100 countries, aim to keep users within Google’s ecosystem.
“People are seeing that Google Search is more useful for more of their queries — and they’re accessing it for new things and in new ways,” the company stated in a blog post. Google highlighted features like voice and visual search as key drivers of continued growth in search volume.
Despite having been dismissed by some after the meteoric rise of ChatGPT, Google is betting big on its Gemini AI technology. CEO Sundar Pichai recently testified that Google hopes to strike a deal with Apple to integrate Gemini into upcoming iPhones.
But the tide may be turning. As eMarketer analyst Yory Wurmser noted, “(Apple's plan) also shows how far generative search sites, such as ChatGPT and Perplexity have come.” Wurmser added that Google’s willingness to pay tens of billions of dollars for default status “shows how crucial the agreements are.”
That urgency is understandable. OpenAI’s ChatGPT reported over 1 billion weekly web searches as of April and boasts more than 400 million weekly active users — signs that the search battlefield is rapidly evolving, and Apple’s next move might just tip the scales.
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