Google publicly disputed testimony by Apple executive Eddy Cue that search traffic on Apple’s Safari browser dropped for the first time in more than two decades, allegedly due to increased use of AI-based search tools.
Apple Testifies to Declining Safari Search Traffic
In testimony delivered during a Washington, DC antitrust trial, Apple senior vice president of services Eddy Cue stated that search volumes on Apple devices—where Google is the default search engine—fell last month for the first time in over 20 years. Cue attributed the decline to users turning to generative AI tools like ChatGPT and Perplexity, commenting, “That has never happened in 20 years... it’s because people are using ChatGPT. They’re using Perplexity. I use it at times.”[3][4] These remarks were made as part of a high-profile case in which the US Department of Justice and several states seek to challenge Google’s dominance in online search.
Google Refutes Claim, Cites Growth in Search Traffic
In a rare public response, Google countered Cue’s assertion, stating that it continues to see overall query growth—including increases from Apple devices and platforms. A Google spokesperson said, “We continue to see query growth across our products, including Safari, and people are seeking information in more ways than ever before.” The company emphasized that search usage remains strong, disputing the narrative that AI competition is materially affecting its traffic volumes.[1][3]
Market Reaction and Broader Context
Cue’s testimony led to a sharp decline in Alphabet’s stock price, reflecting investor concerns over the potential for AI rivals to erode Google’s search dominance.[3] Apple is reportedly exploring the inclusion of AI-powered search alternatives within Safari. If Apple were to replace Google with an AI tool as Safari’s default, it could end the long-standing commercial relationship in which Google pays Apple around $20 billion annually for default status—an agreement central to the ongoing antitrust litigation.[3][4]
Analysis
Cue’s testimony highlights a potential inflection point in the search market, with AI-based tools attracting significant user attention. However, Google’s statement and continued query growth data suggest that, for now, the company’s core business remains resilient. Analysts note the stock market’s sensitivity to even small signals of weakness in Google’s search franchise, given its large share of Alphabet’s revenue. The prospect of Apple adopting a default AI-powered alternative could pose a long-term threat, but no immediate change has been confirmed.
Outlook
The dispute underscores rising competitive pressure from generative AI platforms in the search landscape. Apple’s reported interest in AI search alternatives could reshape existing commercial agreements if executed, but current impacts appear limited to market sentiment and anticipation. Industry observers will watch closely for concrete moves from Apple and ongoing performance data from Google’s search business.
