Google and Apple’s $20 Billion Search Deal Remains Intact
▼ Summary
– A federal judge ruled that Google can continue making search deals, such as its $20 billion agreement to be the default in Apple’s Safari browser.
– The ruling prevents a ban on payments to distribution partners, which the judge argued could cause substantial harm to partners and consumers.
– Google will not be required to show choice screens on its products as part of the remedies in the antitrust case.
– The decision does not force Google to divest Chrome or Android, but it must share some search data with competitors.
– This ruling follows a previous finding that Google is a monopolist in search and advertising, and Google plans to appeal.
The landmark antitrust case against Google has concluded with a ruling that preserves the tech giant’s lucrative search agreements, including its $20 billion deal with Apple to remain the default search engine on Safari. A federal district court judge determined that prohibiting such payments would cause severe financial harm to distribution partners and negatively impact consumers, allowing Google to maintain its current business relationships while imposing certain data-sharing requirements on the company.
Judge Amit Mehta emphasized that cutting off Google’s payments to partners like Apple and Mozilla could have devastating consequences, stating that such a move might be “crippling” for some organizations. Mozilla’s CFO previously testified that without Google’s financial support, the future of Firefox could be in serious jeopardy. The court’s decision means Google can continue offering compensation to companies that preload or feature its search engine, browser, or generative AI products.
Additionally, the judge rejected the Justice Department’s request to force Google to divest its Chrome browser or Android operating system. The company will not be required to display choice screens prompting users to select alternative search providers. However, Google must share certain search data with competitors, a measure intended to foster greater market competition.
This ruling follows last year’s determination that Google holds monopoly power in both search and digital advertising markets. While the court acknowledged Google’s dominant position, it stopped short of imposing the most severe structural changes sought by regulators. Google has announced its intention to appeal the broader monopoly finding, setting the stage for continued legal battles over the company’s business practices and market influence.
(Source: The Verge)
