A federal ruling has reshaped Google’s business model but left its lucrative deal with Apple intact. Judge Amit Mehta ruled that Google must end exclusivity agreements with partners but can continue paying Apple to remain the default search engine on iPhones.
The decision means Google’s $20 billion annual payments to Apple will continue, despite the antitrust case targeting its market dominance.
What Changes for Google
While Google avoided a breakup of its key businesses—like Chrome and Android—the ruling forces it to share search data with competitors. This move aims to give rival search engines a fairer chance in the market.
The court also rejected calls for Google to stop payments to partners. Judge Mehta said banning payments could “cripple” distribution partners and harm consumers.
Apple’s Position
Apple continues to benefit from Google’s financial support. The billions it receives bolster its growing services revenue. However, the deal’s true value remains debated. Most users would still choose Google if given the option, even if Apple set a different default search engine.
Apple has long been rumored to consider building its own search engine. Yet, those plans have reportedly been delayed or shelved because of Google’s ongoing payments.
What Comes Next
Despite the ruling, the search landscape could shift. Google has pivoted toward AI-driven results, which sometimes include inaccurate or poorly sourced summaries. At the same time, new competitors like ChatGPT Search are gaining attention, offering Apple potential future alternatives for integration.
For now, the iPhone’s default search remains Google, supported by billions in annual payments. But with user trust in AI-driven search wavering, Apple may eventually rethink its reliance on Google.
