Apple has been barred from directly participating in the high-profile Google antitrust trial, a decision that could jeopardise its lucrative search deal with Google.
The DC Circuit Court of Appeals upheld a previous ruling that Apple waited too long to intervene, potentially putting its multi-billion-dollar revenue stream at risk.
Apple’s deal with Google, where the latter pays billions annually to remain the default search engine on iPhones, brought Apple about US$18 billion (A$28 billion) in 2021 and US$20 billion (A$30 billion) in 2022. With the U.S. Department of Justice (DOJ) pushing for significant changes to Google’s business practices, that agreement is now at risk.
Apple filed a motion to intervene in December 2024, nearly four years after the DOJ first filed its case in 2020. The company sought to present live testimony and cross-examine witnesses, arguing the trial directly impacts its business.
However, U.S. District Court Judge Amit Mehta and the appeals court denied the request, stating that Apple’s 33-day delay after a November proposal was unjustified. Apple can still submit written testimony and briefs but cannot actively participate in the trial.
The DOJ won the core antitrust case in 2024, ruling that Google had monopolised the search market through exclusive deals with companies like Apple. Now, the focus shifts to remedies, including a proposal to end the revenue-sharing agreement with Apple. If this happens, Apple could lose a significant income stream and may need to seek a new search partner or even develop its own search engine.
Alternatives like Microsoft’s Bing may be an option, but whether Microsoft would pay for Safari placement is uncertain. Smaller players like DuckDuckGo and emerging AI-driven search engines lack the financial power and global reach of Google.
Apple’s SVP of Services Eddy Cue has previously dismissed the idea of Apple developing its own search engine, stating that the company prefers to work with existing search providers rather than invest billions in a new platform. However, with the DOJ’s antitrust crackdown on Google gaining momentum, Apple may have no choice but to reconsider its stance.
The case could have ripple effects on the way search engines are integrated into devices and browsers. If Google is forced to change its business model, it may lead to greater competition in the search market.
The appellate court has given Apple until March 28 to seek further review, but with time running out, the company may have to start planning for a future without Google’s billion-dollar payments.
