Apple's lucrative partnership with Google is hanging in the balance after a recent U.S. court ruling declared Google's search engine an illegal monopoly. This decision could force Google to end its $20 billion annual deal with Apple, which ensures Google's search is the default on Apple devices.
Wall Street analysts highlighted that if Google ends this agreement, Apple might see a 4-6% drop in profits. The current contract, which could extend beyond September 2026, plays a significant role in Google's revenue, accounting for about 36% of its search ad income through Safari.
Legal experts like Herbert Hovenkamp from the University of Pennsylvania suggest that this ruling may set a precedent, discouraging other tech giants from engaging in exclusive deals that limit consumer choice. The court might require companies to allow users to select their preferred search engine, rather than having one set by default.
For young professionals and tech enthusiasts, this development underscores the evolving dynamics of tech partnerships and the growing emphasis on fair competition in the digital marketplace.
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