Microsoft-Google Peace Deal Broke Down Over Search Competition

  • Google forced Microsoft to use its search engine on Duo device
  • After an initial compromise, relations frayed over search ads

The Microsoft Corp. Surface Duo smartphone.

Photographer: Mark Kauzlarich/Bloomberg
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A five-year truce between rivals Alphabet Inc. and Microsoft Corp. came crashing down in 2020 when the tech giants found themselves at odds over their competing web-search businesses, according to testimony at the US government’s antitrust trial against Google.

After a decade of fights, the companies forged a non-aggression pact in 2016, wanting a fresh start to their acrimonious relationship. But three years ago, the situation began to fray, Jonathan Tinter, a Microsoft vice president of business development, testified Thursday in Washington.