Google Can No Longer 'Adequately Represent' Apple's Interests — iPhone-Maker Seeks To Defend $20 Billion Search Deal In Landmark Antitrust Case
Apple Inc. (NASDAQ:AAPL) intends to participate in the upcoming U.S. antitrust trial involving Alphabet Inc.'s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google.
What Happened: The move comes as Apple seeks to defend its billion-dollar revenue-sharing agreements with Google, a significant source of income for the tech giant, reported Reuters.
According to court documents filed in Washington on Monday, Apple has no plans to develop its own search engine to compete with Google, irrespective of the continuation of the payments.
Apple said, “Google can no longer adequately represent Apple's interests: Google must now defend against a broad effort to break up its business units.”
See Also: Want $500 In Google Store Credit? Here’s What You Need To Do
Apple is preparing to present witnesses at the trial, which is set for April.
The prosecution’s goal is to prove that Google needs to take several measures, including selling its Chrome web browser and possibly its Android operating system, to reestablish competition in the online search market.
In 2022 alone, Apple’s agreement with Google brought in an estimated $20 billion.
Alphabet did not immediately respond to Benzinga's request for comments.
Why It Matters: On Dec. 20, Google responded to the proposed remedies in its search distribution case with the DOJ, focusing on non-exclusivity and increased flexibility to limit regulatory overreach.
Last year, Apple’s Eddy Cue justified the billion-dollar deal with Google, citing it as the best available option despite lamenting Google’s privacy policies.
Price Action: On Tuesday, Alphabet's Class A shares gained 0.76%, closing at $196.11, while Class C shares advanced 0.81%, ending at $197.57, as per Benzinga Pro data. Apple shares climbed 1.15% during regular trading hours, closing at $258.20, but dipped 0.039% in after-hours trading.
Photo Courtesy: Koshiro K On Shutterstock
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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