Cue’s remarks came during the US Justice Department’s antitrust case against Google, which centers on the company’s dominance in online search through massive default placement deals, including a US$20 billion (A$31 billion) annual payment to Apple.
Testifying under oath, Cue revealed that Apple is considering AI-driven search platforms such as OpenAI’s ChatGPT, Perplexity AI, and Anthropic, all of which have gained traction as users increasingly turn to conversational search experiences over traditional web links.
Cue noted a drop in Safari searches last month, the first decline Apple has observed, attributing it to rising use of AI tools.
Eddy Cue
While Cue clarified that Google may remain the default “for now,” he confirmed Apple has held discussions with Perplexity and other AI providers and plans to integrate several as search options in Safari. “The landscape is changing,” Cue said. “AI is creating real competition.”
Alphabet shares closed down 7.3% at $149.09 (A$237), while Apple dipped 1.1%. Analysts warned that the testimony could mark a pivotal moment in the search industry, as regulatory pressure mounts and user behavior shifts toward AI-native platforms.
The US Justice Department is pushing for structural remedies, including a possible breakup of Google’s browser and search businesses. A ruling on penalties is expected by August.
