Billions in losses

Google verdict could cost Apple dearly

Google paid a lot of money to secure the standard integration of its search into Apple's Safari.

(Bild: flickr.com/janitors)

The latest ruling in the "antitrust case of the decade" against Google could cost Apple billions in lost revenue. Internet search may no longer be contractually stipulated as the standard in Apple's Safari Internet browser in future, commented analysts at investment bank Evercore ISI.

According to the court, Google had paid the iPhone provider 26.3 billion dollars for this privilege in 2021 alone. This sum is more than a third of Apple's revenue from online advertising via Safari, their colleagues from the bank Morgan Stanley calculated. If this money were to disappear, it would reduce the Group's profit by four to six percent.

Forced sale looms
A US court has ruled that Google has an illegal monopoly on online searches and the associated advertising. If Alphabet's planned appeal is rejected, this would pave the way for follow-up proceedings aimed at curbing Google's market power. In addition to a ban on exclusive contracts with electronic device manufacturers, Alphabet could also be forced to sell off parts of the company.

"The message is: if you have a dominant market position, you should avoid exclusive agreements and ensure that buyers have the free choice to switch to another product," said law professor Herbert Hovenkamp from the University of Pennsylvania.

Opportunity for Apple
The impending loss of revenue is a setback for Apple, said analyst Gadjo Sevilla from research firm eMarketer. At the same time, however, they offer the opportunity to switch to a new, AI-supported internet search engine.