Google escaped the harshest outcomes in its landmark antitrust case, preserving its ability to keep Chrome and Android and continue paying partners to feature its search engine—an outcome that also eases pressure on Apple’s core products and services. According to CNN, Judge Amit Mehta ruled that while Google cannot enter into exclusive agreements, it may keep paying companies to distribute its services, allowing the lucrative default search arrangement on Apple devices to continue.
Ruling preserves Google-Apple default search deal
The decision means Google can still pay Apple billions—a figure estimated at $20 billion in 2022—to remain the default search option on the iPhone, iPad, and Mac. Apple avoids the immediate dilemma of selecting a replacement default search engine across billions of devices worldwide. The timing matters: Apple is already dealing with changes to the App Store tied to EU regulations and has faced challenges keeping pace in AI.
Market reaction reflected relief. Wedbush Securities analyst Dan Ives called the prior uncertainty a “black cloud worry” over Apple’s stock tied to fears of a Google Chrome breakup or an end to the search deal. Shares of Apple rose more than 3% Wednesday, while Google jumped nearly 9%, CNN reported.
Google remains dominant in search, with roughly 90% global market share as of August, per Statcounter Global Stats cited by CNN. Bing trails at just under 4%. If the partnership had been curtailed, Apple would likely have faced a choice between a less popular provider or embarking on an in-house search effort.
AI shifts pressure how users find information
Apple weighs its options amid changing habits
Apple’s senior vice president of services, Eddy Cue, previously said in a court filing that Apple is unlikely to build its own search engine because the company is focused on other growth areas, calling a move into search “economically risky” in a rapidly changing AI landscape. In testimony cited by CNN, Cue suggested there wasn’t a valid alternative to Google at the time and noted that Google queries on Apple devices decreased for the first time in April, though Google said overall queries—including those from Apple platforms—continue to grow.
AI is reshaping search behavior. Google broadened its AI Mode to all US Google app users earlier this year. Reports referenced by CNN indicate Apple has internally discussed possibilities such as bringing AI services like OpenAI, Perplexity, and Anthropic to Safari, and Bloomberg has reported Apple executives floated the idea of buying AI search startup Perplexity. For now, Tuesday’s ruling lets Apple continue its Google partnership while exploring AI-driven approaches on its own timeline.
