tweak logo

Google monopoly ruling risks $20 billion for Apple

Google HQ
Translate from : Google monopolafgørelse risikerer $20 mia for Apple
Apple's lucrative relationship with Google is in jeopardy after a judge's ruling on illegal monopoly. This could cost Apple up to 6% of profits.
By Maria
7 aug. 2024 11:55 am
f

Alphabet-owned Google pays Apple $20 billion annually to be the default search engine on iPhone devices. This shows an analysis carried out by Morgan Stanley. But analysts say avoiding antitrust fines could require ending the deal, which could mean users are asked to choose a search engine.

It is estimated that ending the exclusivity agreement could reduce Apple's revenue by up to 6%, leaving the company looking for new opportunities. One option could be to offer alternatives such as Microsoft's Bing.

Another could be to develop a new search product, perhaps powered by OpenAI. Apple has already announced that they are bringing the company's chatbot to their products. But they are also in talks to offer Google's Gemini bot and other AI models - which analysts say is a sign that they are worried about making more exclusive deals.

Apple's search engine agreement with Google runs until at least September 2026. Legal experts say the dispute over the monopoly ruling could last just as long, and may even go all the way to the Supreme Court.

Latest smartphone

Most read smartphone

Latest smartphone

Our Partners