Apple Scores Major Victory as DOJ Ruling Preserves Google Search Deal

Apple has scored a major victory as a federal court decision clears the way for its lucrative search partnership with Google to continue. The ruling removes a significant overhang tied to fears the Department of Justice could force an end to the $20 billion search deal or mandate a breakup of Chrome. Analysts at Wedbush estimate the legal uncertainty had placed a $25 per share drag on Apple's valuation and view the ruling as "very bullish" for investors. Shares of Apple traded up 3.3% at $237 on Wednesday afternoon.

A federal court decision has cleared the way for Apple's (NASDAQ:AAPL) lucrative search partnership with Google (NASDAQ:GOOG) to continue, removing a significant overhang tied to fears that the Department of Justice could force an end to the deal or mandate a breakup of Chrome. The ruling, handed down by U.S. District Judge Amit Mehta, allows Google to continue paying Apple for prime placement in its Safari web browser, a deal estimated to be worth around $20 billion annually [1].

The decision is a significant victory for Apple, as it ensures that this highly profitable revenue stream remains intact. Apple's Services segment, which includes the Google search payments, has become critical as hardware growth slows. Without the deal, Apple’s Services revenue would fall by about 21% and operating profit by roughly 16% based on FY’24 numbers [1]. The ruling also signals that regulators may be reluctant to disrupt Apple’s 'gatekeeper' model, effectively validating its ability to monetize its distribution power [1].

The ruling is expected to have a positive impact on Apple's stock. Analysts at Wedbush estimate that the legal uncertainty had placed a $25 per share drag on Apple's valuation. The ruling is viewed as "very bullish" for investors, and shares of Apple traded up 3.3% at $237 on Wednesday afternoon [1].

The decision also leaves the door open for Apple to forge similar agreements with other providers. If Google can pay for default placement, so can Microsoft with Copilot, or emerging players like Perplexity and Anthropic. Apple could emerge as the ultimate winner in the AI shake-up, capturing incremental value regardless of which company leads the next phase of search [1].

The ruling is part of a broader trend in antitrust cases targeting Big Tech companies. The Justice Department has been focusing on default settings, data access, and distribution channels rather than simply focusing on pricing [2]. The ruling is expected to influence other antitrust cases pending against technology giants, including Meta and Amazon.

Google must begin implementing changes within six months, with the independent monitor in place shortly thereafter. The company has signaled that it may appeal certain aspects of the ruling, but legal analysts say the remedies are likely to stand given the judge's detailed fact-finding [2].

For consumers, the practical effects may be most visible in how devices prompt them to select search engines during setup and in greater opportunities for rivals to improve their offerings with better access to data. Whether those changes lead to a meaningful shift in market share remains to be seen. Google today controls more than 85% of U.S. search queries, according to court findings [2].

References:
[1] https://www.forbes.com/sites/greatspeculations/2025/09/03/google-deal-intact-what-next-for-apples-100-bil-services-business/
[2] https://www.newsmax.com/finance/streettalk/google-antitrust-doj/2025/09/02/id/1224864/