Hajra Naz
Google narrowly avoided the worst possible outcome in its landmark antitrust trial on Tuesday. A federal judge ruled that the company could keep its Chrome browser and Android operating system under its control. Just as importantly, it can continue paying other tech companies to promote its search engine, a decision that directly benefits Apple.
Judge Amit Mehta prohibited Google from signing exclusive deals with partners but allowed it to continue distributing its services through paid agreements. That means Google can still pay Apple billions of dollars, estimated at $20 billion in 2022, to remain the default search option on iPhones, iPads, and Macs.
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What It Means for Apple
For Apple, the ruling was a huge relief. The company avoided the logistical and financial headache of replacing Google Search with a less popular alternative or attempting to build its own search engine from scratch. Apple’s devices ship to billions of users worldwide, and deciding on a new default search option would have been disruptive.
At a time when Apple is already facing pressure from EU regulations on its App Store and lagging in artificial intelligence development, the ruling lifted a major burden. Dan Ives, an analyst at Wedbush Securities, said the decision removed a “black cloud worry” hanging over Apple’s stock. Investors reacted quickly: Apple’s shares rose more than 3% on Wednesday, while Google’s jumped nearly 9%.
Google’s Dominance and the DOJ’s Core Question
The Justice Department’s case centered on whether Google dominates search because it provides the best product or because it has cemented its place as the default option across browsers and devices. With nearly 90% of the global search market, according to Statcounter, Google overshadows rivals like Microsoft’s Bing, which holds under 4%.
Apple executives have previously admitted that alternatives to Google were lacking when the company made its search agreements. Eddy Cue, Apple’s senior vice president of services, testified in 2023 that Apple was unlikely to build its own search engine. He also noted it would be financially risky given how fast the industry is being reshaped by artificial intelligence.
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AI Shifts the Search Landscape
The rise of AI tools is already influencing user behavior. Gartner projects that search engine usage could drop by 25% by 2026 as more people rely on AI-powered assistants like ChatGPT, Google’s Gemini, or startups like Perplexity. Cue testified that Google queries on Apple devices actually dipped for the first time in April, though overall usage of Google Search continues to grow.
In response, Google has rolled out AI-powered search features more widely, hoping to defend its dominance. Apple, meanwhile, is exploring new options. Reports suggest the company has considered partnering with or even acquiring AI search firms such as Perplexity. Cue has also hinted that Apple may eventually integrate AI-powered search alternatives directly into Safari.
What Happens Next
For now, the ruling gives Apple breathing room. It can keep collecting billions in annual payments from Google while carefully plotting its long-term strategy in a rapidly changing search and AI landscape. Google maintains its dominance but faces growing pressure to adapt as AI shifts how people seek and consume information.
FAQs
1. Where does Google hold the largest market share in search?
Globally, Google controls about 90% of the search engine market, with Bing, Yahoo, and other rivals making up the rest.
2. How much does Google pay Apple each year?
In 2022, reports estimated that Google paid Apple around $20 billion to remain the default search provider on iPhones, iPads, and Macs.
3. Why didn’t Apple build its own search engine?
Apple executives have said it would be too risky and costly. The company is more focused on services like the App Store, Apple Music, and AI integration.
4. How is AI changing the future of search?
Analysts expect AI assistants to cut into traditional search traffic. Tools like ChatGPT and Perplexity may replace some searches by giving direct answers instead of links.
5. Did this ruling completely clear Google of wrongdoing?
No. While Google avoided the harshest penalties, the court still limited its ability to strike exclusive deals. The company remains under scrutiny for how it maintains its market dominance.
