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On Monday, the American judge made a ruling in the antitrust case against Google. This statement also has painful consequences for Apple, which has to look for “inconvenient
On Monday, the American judge made a ruling in the antitrust case against Google. This statement also has painful consequences for Apple, which has to look for “inconvenient alternatives”.
According to the court in Washington, Google has illegally created a monopoly with its search engine. To this end, the company signed several billion-dollar contracts with smartphone manufacturers, web browsers and even telecommunications operators to further develop its search engine. As a result, Google leaves no room for competition and illegally creates a monopoly. The fine in the antitrust case will be determined at a later hearing, but the company can expect a large fine and “structural solutions”.
During the story surrounding the antitrust case against Google, Apple has been remarkably silent. However, Apple has benefited the most from the billion-dollar deals with Google. For example, the company paid Apple more than $20 billion a year to become the default search engine in Safari.
One of the big exclusive billion-dollar deals that Google made to prioritize its search engine was with Apple. These deals date back to 2002, when Google paid Apple a portion of its search ad revenue to direct its users to Google Search by default. American judge Amit Mehta therefore called Apple a “crucial partner” of Google.
During the trial, several Apple executives were called upon to explain the partnerships. Apple plays an important role in this whole story and the company will also be closely involved in the next hearing. Independent analyst Eric Seufert wrote on X that Google’s antitrust case had a painful outcome, especially for Apple.
According to the Financial Times, some JPMorgan analysts wrote that the judge’s decision leaves Apple with a number of “uncomfortable alternatives.” One of the options for Apple is to enter into a new agreement with Google in which the company does not grant Google exclusive rights, which would affect its value.
In addition, Apple could also enter into agreements with alternative search engines such as Bing and Microsoft. However, according to the analysts, this would mean “less economic benefits for Apple given Google’s superior advertising revenues.”
The ruling for Google therefore has direct consequences for Apple. Google will most likely appeal, which could drag out the case for several more years.
Source: IT Daily
As an experienced journalist and author, Mary has been reporting on the latest news and trends for over 5 years. With a passion for uncovering the stories behind the headlines, Mary has earned a reputation as a trusted voice in the world of journalism. Her writing style is insightful, engaging and thought-provoking, as she takes a deep dive into the most pressing issues of our time.
