Apple Seeks to Protect $20 Billion Revenue from Google in Antitrust Case

Prosecutors, led by the U.S. Department of Justice, are working to demonstrate that Google’s actions have hindered competition in online search.

New York: Apple is seeking to intervene in Google’s upcoming U.S. antitrust trial, arguing that it cannot solely rely on Google to defend the revenue-sharing agreements that have brought in billions of dollars for the tech giant each year. These agreements, which make Google the default search engine on Apple’s Safari browser, generated an estimated $20 billion in 2022 alone.

In court papers filed on Monday in Washington, Apple’s legal team made it clear that the company has no plans to create its own search engine, regardless of the outcome of the payments from Google. Apple’s participation in the trial, set for April, is critical as it aims to protect its substantial revenue stream from the search deal.

Prosecutors, led by the U.S. Department of Justice, are working to demonstrate that Google’s actions have hindered competition in online search. Their goal is to force the company to take significant steps to restore competition, potentially including the sale of its Chrome web browser and Android operating system.

Apple argues that, as the trial progresses, Google no longer adequately represents its interests, particularly as Google defends against the prospect of breaking up its business units. The landmark antitrust case holds the potential to drastically reshape the online search landscape.

In an attempt to address mounting scrutiny, Google has proposed relaxing its default agreements with mobile device manufacturers, browser developers, and wireless carriers. However, it has not suggested ending its lucrative ad revenue-sharing deals with Apple and others.

Also Read | Cutting-Edge Chinese Stealth Fighter Jet Captures Global Attention

The trial follows a key ruling in August 2024, when a U.S. judge found that Google violated antitrust laws by creating an illegal monopoly with its billion-dollar deals to become the default search engine. This ruling represents a significant victory for federal authorities challenging Big Tech’s dominance and paves the way for the second trial, which will focus on potential remedies, including the possibility of a breakup of Google’s parent company, Alphabet.

Also Read | Manmohan Singh, India’s Former Prime Minister, Dies at 92

This case marks the first major legal battle in a wave of antitrust lawsuits against Big Tech, which also includes ongoing cases against Meta Platforms, Amazon, and Apple. Originally filed during the Trump administration, these lawsuits are setting a precedent for reevaluating monopolistic practices in the tech sector.

Recent News