The Verge Reports: Apple Strikes Deal with Amazon to Remove Competitors’ Ads from Search Results
In a recent report by Insider, it was revealed that Apple has struck a deal with Amazon to remove competitors’ ads from search results and product pages for iPhones, iPads, MacBooks, and other Apple products. This agreement has made search results and product pages for Apple devices cleaner and less cluttered than those of competitors.
While Amazon still lists competing products on search result pages for Apple products, it limits the ads it places above, below, and between the results. For example, when searching for an iPhone 15 on Amazon, a user will only see an Apple product banner at the top of the page along with another ad banner at the very bottom. In contrast, searches for competing devices, such as the Samsung Galaxy S23, surface ads for other products and services throughout the results page.
In addition to cleaning up Apple’s search results, Insider points out that Amazon also cuts down on the ads for Apple’s product pages. Instead of advertising “products related to this item” and items rated “4 stars and above,” the pages for Apple products are relatively ad-free.
The ad-free pages stem from a 2018 agreement Apple made to sell its products on Amazon, as previously revealed by the House Judiciary Committee. Jeff Wilke, Amazon’s former retail chief, stated in an email, “We understand that Apple does not want to drive sales to competing brands in search or detail pages… On product detail pages, we understand that Apple does not want to see any product placement that recommends non-Apple products.”
Apple spokesperson Fred Sainz confirmed the arrangement to The Verge, stating that it limits advertising in spaces with certain Apple-related queries. However, it is still unclear if Apple compensates Amazon for the ad space it’s taking up, and if so, how much. Wilke’s email to Amazon said, “Apple would need to purchase these placements or compensate Amazon for the lost ad revenue.”
The behavior of placing “junk” ads around its marketplace is one of the behaviors the Federal Trade Commission points to in its antitrust lawsuit against Amazon, stating that it extracts “billions of dollars through increased advertising despite worsening its services for customers.” By mostly avoiding them, Apple could have a leg up on other retailers on Amazon.
This deal between Apple and Amazon raises questions about the impact on advertising and competition in the marketplace, and it is likely to be closely monitored by regulators in the future.