Judge Allows Apple to Keep $20B Google Search Deal

In a significant ruling, a U.S. federal judge has allowed Apple to maintain its profitable search agreement with Google, which generates around $20 billion annually for the iPhone maker. This decision is part of an ongoing antitrust case where Judge Amit Mehta ruled that while Google cannot enter into exclusive internet search agreements, it can continue to pay browser developers, including Apple, to be the default search engine.

Judge Mehta's decision permits Google to sustain its partnerships with browser developers, provided these companies promote other search engines and offer alternative options in different operating systems or privacy modes. Users must also be allowed to change the default search engine settings annually. The judge highlighted that stopping Google's payments would likely cause substantial harm to distribution partners, related markets, and consumers, potentially leading to catastrophic downstream damage. Therefore, a broad payment ban was not implemented.

Currently, Apple gives Google's search engine the prime position in the search bar of its Safari browser on computers and mobile devices. Users have the option to switch to other search engines like Microsoft's Bing or DuckDuckGo. Apple also modified its iOS software two years ago to allow different search engines to be used in privacy mode.

The ruling is a major win for Apple, as its search agreement with Google is a central component of the landmark lawsuit filed by the U.S. Department of Justice against Google. The decision also allows Google to retain its popular Chrome web browser. Mehta had previously ruled that Google illegally monopolized the online search and search advertising markets and held a three-week hearing in April to determine appropriate remedies.