What happens when a decades-long tech bromance hits a legal iceberg? Apple's $20 billion-a-year deal with Google—which makes Google the default search engine on iPhones—now faces existential risk after a U.S. judge ruled Google's search dominance is an illegal monopoly. Analysts say this could *delete* up to 6% of Apple's profits if the pact dissolves.
Here’s the tea: Google reportedly pays Apple 36% of its Safari search ad revenue for that prime iPhone real estate. But with the court possibly banning such deals, Apple might need a new cash cow . Wall Street warns the ruling could force tech giants to let users pick their search engine at setup—like choosing a Netflix profile, but for the internet.
Though the contract runs until 2026 (with renewal options), the ruling sends shockwaves. Legal expert Herbert Hovenkamp calls it a wake-up call for monopolistic practices: 'Consumer choice just got a VIP seat.'
For Gen Z investors and startup founders, this could mean a more competitive tech landscape. Could DuckDuckGo or Bing become the next iPhone default? Stay tuned.
Reference(s):
cgtn.com