Apple may lose its $20 billion deal with Google, which makes Google Search the default search engine on iPhones. The U.S. Department of Justice (DOJ) is pushing for antitrust remedies, including banning Google from making exclusive agreements with competitors.
A federal judge has already ruled that Google is a monopoly in search and online advertising. Now, the DOJ wants to break up Google’s control by forcing it to sell Chrome and end deals with companies like Apple. If the court agrees, it could mark a major shift in the tech industry.
How Apple Benefits from the Google Search Deal
Apple currently earns billions of dollars through its search partnership with Google. In 2022, Google’s parent company Alphabet paid Apple $20 billion for default search placement in Safari. This deal contributes a large share of Apple’s services revenue and helps fund its ecosystem.
If the DOJ’s proposed remedies go into effect, Apple could lose this lucrative agreement. The company has opposed the ruling but was told by Judge Amit Mehta that it was “too late” to intervene. Apple now faces an uncertain future regarding default search engine revenue.
What Happens Next?
Judge Mehta will hear arguments from Google and the DOJ in April 2025. A final ruling on the search engine deal could come by August. Meanwhile, Apple has filed a separate motion in the D.C. Circuit Court of Appeals, warning that the decision could cause “irreparable harm” to its business.
If Google loses the case, Apple might have to consider alternatives like creating its own search engine. However, Eddy Cue, Apple’s senior vice president of Services, has stated that Apple has no interest in developing a search engine at this time.
The Google-Apple search deal has been a key part of both companies’ business strategies. If the DOJ succeeds in its antitrust fight, Apple will lose a major revenue source, and the default search landscape could change dramatically. The final ruling will shape the future of online search and competition in the tech industry.
