Google search deals account for 50% of all domestic searches, expert says at trial
Alexander Koerner
Google's (NASDAQ:GOOG) (NASDAQ:GOOGL) search deals that it has with device makers and wireless carriers account for roughly half of all U.S.-based search queries, a witness for the government said at the antitrust trial on Monday.
âThe power of the defaults is very significant,â Massachusetts Institute of Technology professor and economist Michael Whinston said at the trial, according to Bloomberg. 
âWhen you see Google paying billions and billions and billions, there has to be a reason. Thatâs the first thing that, as an economist, slaps me in the face,â Whinston added.
In addition to the claim that Google's deals block out rivals such as Microsoft (MSFT) and DuckDuckGo from up to 50% of all U.S.-based searches, Whinston explained that another 20% of all domestic searches are made via Google's Chrome browser.
Whinston was hired by the U.S. Department of Justice to provide analysis for its case that Google's deals are anticompetitive and against the law.
Earlier in the case, Microsoft (MSFT) Chief Executive Satya Nadella warned that Google could expand its lead in the lucrative search market thanks to artificial intelligence. âYou get up in the morning, you brush your teeth and you search on Google,â Nadella said. 
Microsoft and Google compete in the search market, with Google owning more than 98% of the market, according to Impression Digital.
Not only are Google's (GOOG) (GOOGL) deals lucrative for itself, but some analysts believe they are lucrative for its partners, including Apple.
Bernstein analyst Toni Sacconaghi, who has a market perform rating and $195 price target on Apple (AAPL), said the deal, known as the Information Services Agreement, is likely worth between $18B and $20B annually and could account for anywhere between 14% and 16% of the iPhone maker's operating profits.
Several Apple executives have also testified at the trial, including senior vice president of Services Eddy Cue, who said Google provides the best option for consumers.
In addition to Apple, Google has deals with Samsung (OTCPK:SSNLF) and others. 
Google (GOOG) (GOOGL) shares rose around 1.5% in late trading on Monday.

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