Google’s antitrust ruling could threaten Apple’s $20 billion deal

Summary:

• A US judge’s ruling could end Apple’s $20 billion annual deal with Google.
• The agreement, making Google the default search engine on Apple devices, might be scrapped due to antitrust issues.
• Apple could lose 4-6% of its profit if the deal is terminated and may shift towards AI-based search solutions.

A recent US court ruling threatens Apple’s lucrative $20 billion deal with Google. The judge found that Google’s practices constituted an illegal monopoly, potentially ending the agreement that makes Google the default search engine on Apple devices.

Google pays Apple a significant sum annually, accounting for a large portion of its search advertising revenue. Analysts suggest that if this deal is invalidated, Apple could face a 4-6% decline in its profit.

The current agreement extends until September 2026, with Apple holding the option to extend it further. Analysts predict that a likely outcome of the ruling could be Google losing its default status or requiring companies like Apple to offer users a choice of search engines.

Both Apple and Alphabet stocks were relatively stable despite broader market movements. Legal experts indicate that any remedy phase could be prolonged, possibly extending into 2026 with potential appeals.

If the deal is canceled, Apple might explore alternatives like Microsoft Bing or develop its own search engine, potentially using OpenAI’s technology. The ruling may accelerate Apple’s shift towards AI-driven search solutions and enhancements in its Siri virtual assistant. Despite the financial setback, analysts see this as a chance for Apple to innovate in the search technology space.