The legal battle over Google’s alleged monopoly in web search services intensifies as a judge blocks Apple‘s attempt to delay the next phase of the antitrust lawsuit. The Department of Justice (DOJ) initially filed the lawsuit against Google in 2020, accusing the tech giant of maintaining a monopoly over web search services and search text advertising. The DOJ has proposed breaking up the company to dismantle its dominant hold on the market.
Judge Amit Mehta recently ruled that Google’s practice of paying partners, including Apple, to make its search engine the default on smartphones and browsers was anti-competitive. Apple reportedly receives as much as $20 billion annually for setting Google as the default search engine on its devices. This ruling marks a significant point in the case, which is set to enter its remedial phase in April.
Apple, seeking to defend its interests, filed a motion to intervene in the lawsuit, requesting a delay in proceedings. However, Judge Mehta rejected Apple’s motion, emphasizing that Apple’s annual payment from Google facilitated Google’s monopoly.
“Apple has not satisfied the ‘stringent requirements’ for obtaining the ‘extraordinary relief’ of a stay pending appeal,” – Judge Amit Mehta
The antitrust lawsuit contends that Google’s dominance in search services and advertising stifles competition. As a remedy, the DOJ has suggested licensing search data to competitors and potentially splitting Android, Play Store, and Chrome from Google.
Apple’s Services chief, Eddy Cue, expressed concern over the implications of the ruling. He warned that Apple would face two unpalatable choices if Google were prohibited from sharing revenue for search distribution. Cue argued that either Google would gain valuable access to Apple’s users at no cost, or Apple would suffer significant financial harm.
“If this Court prohibits Google from sharing revenue for search distribution, Apple would have two unacceptable choices.” – Eddy Cue
Amidst these developments, Apple filed an emergency motion to halt the proceedings, asserting that it would “suffer irreparable harm” if deprived of its right to participate in the remedial phase.
What The Author Thinks
The intensifying legal battle between Apple and Google over web search monopolies is reshaping the landscape of digital competition. While the lawsuit reflects broader concerns about Google’s dominance, it also underscores the challenges Apple faces in navigating its financial interests tied to Google’s search distribution. As the remedial phase approaches, the outcome could redefine the balance of power in the tech industry, with potential ramifications for both companies and their users.
