Apple might lose its lucrative $20 billion annual deal with Google following a recent antitrust ruling. The court deemed Google’s payments to Apple illegal, arguing that they violate antitrust laws designed to prevent monopolistic practices. This agreement, which makes Google the default search engine on Safari, significantly boosts Apple’s services revenue, accounting for about a quarter of it.
The ruling challenges Google’s strategy of paying Apple to maintain its dominance in web search. The substantial payments not only secure Google’s top position but also ensure access to Apple’s affluent user base, making it highly valuable for advertisers. With the legal landscape shifting, Google may cease these payments to comply with antitrust regulations.
Despite the potential financial setback, Apple’s growing services sector, which reported $78.13 billion in revenue, might mitigate the impact. While the loss of Google’s payments could create a revenue shortfall, Apple is expected to rebound by expanding its services and finding alternative revenue streams.
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