Judge Allows Apple to Keep Google Search Deal, Generating $200B Revenue

In a significant ruling, a federal judge in the United States has allowed Apple to maintain its profitable search agreement with Google, which generates approximately 200 billion dollars in annual revenue for the iPhone manufacturer. This decision is part of an ongoing antitrust case that has far-reaching implications for both companies.

Judge Amit Mehta, who oversaw the case, ruled that while Google is prohibited from entering into exclusive internet search agreements, it can continue to pay browser developers, including Apple, to set Google as the default search engine. This ruling enables Google to sustain its dominant position in the search engine market while also offering users the flexibility to switch to alternative search engines such as Microsoft's Bing or DuckDuckGo. The ruling also mandates that companies must promote other search engines and provide alternative options in different operating systems or privacy modes, allowing users to change their default search engine settings annually.

The judge's decision underscores the potential adverse effects of halting Google's payments to its partners. Mehta noted that such a move would likely cause substantial harm to distribution partners, related markets, and consumers, and could be catastrophic in some instances. Therefore, a broad payment ban was not enforced.

Currently, Apple favors Google's search engine by placing it in the prime position in the search bar of its Safari browser on both computers and mobile devices. Users have the option to switch to other search engines, and Apple made changes to its iOS software two years ago to allow different search engines to be used in privacy mode.

This ruling is a significant win for both Apple and Google, as it allows them to continue their lucrative partnership. The decision is part of a broader antitrust lawsuit filed by the U.S. Department of Justice against Google, which alleges that the tech giant has engaged in anticompetitive practices to maintain its dominance in the search engine market. The ruling also allows Google to retain its popular Chrome web browser.

The judge's decision follows a three-week hearing held in April to determine the appropriate remedies for Google's alleged anticompetitive behavior. Last year, Mehta ruled that Google had illegally monopolized the online search and search advertising markets. The latest ruling provides some clarity on how Google can continue to operate within the bounds of the law while still maintaining its market position.