Google’s long-standing agreement to be the default search engine on Apple devices is at risk, as a U.S. antitrust lawsuit moves forward. The Department of Justice is targeting the multibillion-dollar deal, arguing that it gives Google an unfair advantage and limits competition in the search market.
Currently, Google pays Apple an estimated $20 billion annually to maintain its default status in Safari and across iPhones. However, if the court rules against the deal, it could force Google to end these payments—potentially disrupting the business models of both tech giants.
Court Considers Lighter Remedies Over Structural Changes
Judge Amit Mehta, who is overseeing the case, has so far appeared reluctant to order extreme actions such as breaking up Google or forcing the sale of its Chrome browser. Instead, the court is considering less invasive options like requiring Google to share its search data with competitors or limiting its default search agreements.
While Google could face some restrictions, analysts believe the company will survive the case without major restructuring. Still, the loss of default placement on Apple devices would significantly reduce its search traffic and ad revenue.
What’s at Stake for Apple?
Ending the Google deal would hit Apple financially. It currently receives one of the largest annual payouts in tech for keeping Google as the default engine. Without this income, Apple would lose a significant source of revenue.
Moreover, Apple doesn’t have its own search engine, although internal reports suggest the company has quietly developed search technology, including tools like Applebot. If the partnership ends, Apple might feel pressure to either build its own search engine or make a new deal with a different company, such as Microsoft.
The Industry-Wide Impact
The case could change how tech companies strike search deals moving forward. While some fear one dominant firm could simply replace another, the court aims to open up space for real competition.
The judge’s decision is expected to set a precedent that could reshape the future of internet search—both for consumers and the companies that profit from it.
