Google Panics Over Samsung's Consideration to Replace Search Engine with MS Bing

NYT Reports Citing Internal Google Messages

Foreign media reported that Google’s internal staff were shocked by news that Samsung Electronics is considering changing the default search engine on its self-produced devices, including Galaxy smartphones, from Google to Microsoft (MS) Bing. Amid a direct confrontation between MS and Google over AI chatbot-equipped search engines, Google’s growing anxiety has reportedly led it to hasten plans for a complete search engine overhaul.

[Image source=Yonhap News]

The New York Times (NYT) cited internal Google messages on the 16th (local time), reporting that news of Samsung’s consideration last month to switch its search engine to Bing caused significant shock within Google.

According to the NYT, "Messages sent by Google to its employees indicate that Google is gathering materials this month to persuade Samsung and is seeking resources from employees to assist with this effort." This is interpreted as a response to prevent Samsung’s move to replace the default search engine.

Samsung has not issued an official statement to the NYT. However, the NYT reported that Samsung is currently in negotiations with Google regarding this matter. It also added that there is a possibility Samsung may maintain Google as the default search engine instead of switching to Bing. The contract between Google and Samsung for the default search engine is estimated to generate annual revenue of about $3 billion (approximately 3.9 trillion KRW).

The NYT stated, "It is unclear whether MS’s recent AI-related work is the main reason Samsung is reconsidering its 12-year relationship with Google," but added, "Samsung’s threat represents the first potential crack in Google’s 'impregnable' search business, which was valued at $162 billion."

Google told the NYT that it is continuously improving its search engine to provide more reasons for users and partners to choose Google, and that Android smartphone manufacturers, including Samsung Electronics, have the freedom to adopt technologies from other companies to enhance user experience.

Despite this official stance, it is reported that Google is internally in significant turmoil. The NYT described Google as being "in a panic" and "shocked." Since Samsung produces hundreds of millions of smartphones annually based on Google’s Android operating system (OS), an actual switch of the default search engine would inevitably impact Google’s market share.

In the case of Apple, which produces the iPhone, its three-year contract with Google for the default search engine is set to expire at the end of this year. There are forecasts, reported by U.S. investment bank Bernstein in February, that Apple may either renew the contract or sign with a new company through a bidding process.

Facing Bing’s pursuit and a shaken position, Google is accelerating the integration of search engines and AI. According to the NYT, Google has assigned about 160 employees to the Magi project, developing a search engine that combines traditional search results with AI-generated answers. Like ChatGPT, this generative AI-based engine will provide personalized responses to users while continuing to display ads on transactional search results such as product purchases or flight bookings.

The new AI-integrated search engine was recently unveiled to employees first, with plans to release it to 1 million users next month and gradually expand to 30 million users by the end of the year. The search engine is expected to launch first in the United States. The NYT reported that "Google is running at full speed through numerous projects to protect its core business."

Meanwhile, according to data provider StatCounter, as of last month, Google held a 93.17% share of the global search engine market, while Bing accounted for 2.88%.

This content was produced with the assistance of AI translation services.