Microsoft Corp's (NASDAQ: MSFT) CEO, Satya Nadella, recently testified in the ongoing Google antitrust trial, shedding light on the competitive dynamics of the search market influenced by artificial intelligence (AI). Nadella highlighted the potential of AI in enhancing search capabilities, a domain where Google, a unit of Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL), has maintained significant dominance.
Nadella's insights come after introducing Microsoft's Bing AI-based search earlier this year, a move aimed at reinvigorating Bing's market presence.
However, the CEO expressed concerns that Google could leverage its substantial search-related earnings to secure exclusive content rights, enhancing its AI and further extending its market lead, Bloomberg reports.
The Department of Justice (DOJ) has accused Google of unlawfully maintaining its monopoly, alleging payments of $10 billion annually to rivals and manufacturers to prioritize its search engine on various devices.
Jonathan Tinter, a business development executive at Microsoft, previously testified about the company's failed attempts to position Bing as the default search app on Apple Inc's (NASDAQ: AAPL) products despite offering financially favorable terms.
Nadella echoed these sentiments, suggesting that Apple utilized Microsoft's interest to elevate the price received from Google for default search engine placement.
Nadella, who played a pivotal role in Bing's creation, highlighted Microsoft's $100 billion investment in the search engine.
Despite these efforts, Bing has struggled to capture significant market share, especially on mobile devices, where Google remains the preferred choice.
The CEO's testimony underscores the intense competition and barriers within the search market landscape.
Price Action: MSFT shares traded higher by 0.82% at $318.33 on the last check Monday.