Apple has once again supported Google, which is facing the forced dismantling of its operations. The courts are criticizing the online search giant for its monopoly position in several of its activities. More interested support than one might think.
Google (Alphabet) has seen better days: the firm is currently facing a major antitrust lawsuit in the United States – the outcome of which could threaten its future. A 2023 lawsuit recognized that Google enjoyed an illegal monopoly on online search. While citing the agreements made with other American giants to ensure that Google remains the default search engine in various software and interfaces.
It's because of these agreements that iPhone and Mac users automatically launch a Google search when they type a query in Safari's address bar. The amounts involved are considerable. One might naively think that Apple is paying Google for the right to offer its services by default. But as you've probably understood, it's mainly Google that stands to lose if it's replaced by competitors.
AI has a chance of ending the monopoly, without legal intervention, according to Apple
In such a context, Google doesn't skimp on the dollars: Apple thus recovers 20 billion in royalties each year so that nothing changes. As a result, it's quickly understood that Apple has nothing to gain from a resounding defeat for its major competitor. Since such a failure could signal the end of these significant capital flows.
The Apple services manager, however, puts forward some rather interesting arguments to convince the judge not to risk Google's future. Eddie Cue, quoted by The Verge, thus admitted before the court the financial interest of the agreements between Apple and Google. While noting that if they were declared null and void, this would save Google money, while seriously harming Apple.
Eddie Cue explains that nothing currently matches the results provided by Google, which could force Apple to continue promoting it, for free if necessary. The financial loss, major in its magnitude, risks, he continues, "impacting Apple's ability to launch new products". The manager admits that these agreements encourage the firm not to offer its own search engine.
While adding that opting for Google allows it to focus on where the firm can deliver the most added value. Then comes a very interesting argument on the impact of AI. Eddie Cue has already stated that this technology should profoundly change Apple's direction in the next decade. As for Google, he believes that large language models are about to change the way people search online.
With very rapid developments, and the arrival of new players “who approach the problem differently.” He thus believes that these technologies can break Google's monopoly more effectively than a condemnation to dismantling it. And the manager concludes “until truly competitive products emerge, people will continue to use the best.”
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