The investigation initiated by US regulators against Google, suspected of abusing its dominant position in the search engine market, could lead to significant changes in existing agreements with partners, including Apple. This investigation threatens the substantial payments Apple receives from Google, potentially affecting tens of billions of dollars in annual payments. Faced with this risk, Apple is now prepared to defend its interests in court directly.
According to a report from Reuters this week, Apple’s legal team has filed a motion to participate in the court proceedings regarding Google’s business practices. The company seeks to ensure its interests are adequately represented, given the high financial stakes involved. In 2022 alone, Apple received around $20 billion from Google for using its search engine as the default tool on Apple devices. With such a large sum at stake, Apple is concerned that Google, under increasing regulatory scrutiny, may not be able to represent its interests effectively in the ongoing investigation.
Apple’s Position on Future Agreements
Apple has made it clear that it does not plan to develop its own search engine to compete with Google, regardless of the court’s decision in the case. This stance remains unchanged whether Google continues its financial arrangements or if the court forces a change in those agreements. Apple’s reliance on Google is not limited to financial arrangements; there are also technical aspects involved in their partnership. Apple’s dependence on Google’s search engine technology remains a significant part of its business model.
Apple’s motion to join the case reflects a desire to protect its interests should the investigation lead to changes in its relationship with Google, adds NIXSolutions. The company is particularly concerned that Google, under pressure to restructure its business due to regulatory concerns, may not be in a position to fully defend the terms of its existing agreements with Apple. Given the complexity of the situation, Apple believes its direct involvement in the case is necessary to safeguard its long-term interests.
In conclusion, as the legal process unfolds, Apple’s participation in the case becomes increasingly important. We’ll keep you updated as more integrations become available or developments occur in the ongoing investigation.