DOJ’s Appeal Puts Apple-Google Search Deal Under Renewed Scrutiny
In August 2024, Judge Amit Mehta determined that Google had unlawfully maintained its dominance in the U.S. online search market. This ruling highlighted Google’s exclusive agreements with companies like Apple, which were found to have significant anticompetitive effects. ([macrumors.com](https://www.macrumors.com/2024/08/05/google-search-antitrust-monopoly/?utm_source=openai))
Following this decision, the case entered a year-long remedies phase. During this period, various stakeholders, including Apple, presented their perspectives on potential corrective measures for Google’s practices. Proposals ranged from compelling Google to divest its Chrome browser to prohibiting exclusive agreements such as the one with Apple. Notably, Apple’s Senior Vice President of Services, Eddy Cue, suggested that advancements in artificial intelligence might render traditional search agreements obsolete. ([arstechnica.com](https://arstechnica.com/apple/2024/08/google-antitrust-verdict-means-inconvenient-alternatives-for-apple/?utm_source=openai))
In September 2025, Judge Mehta issued a ruling that was largely favorable to Google. The decision permitted Google to continue its financial arrangements with Apple, allowing Google Search to remain the default option on Safari. However, the ruling imposed certain conditions:
– Non-Exclusivity: Google is prohibited from requiring exclusivity in its agreements. This means Apple retains the freedom to feature competing search engines alongside Google.
– Annual Review of Defaults: Apple must have the ability to reconsider and potentially change its default search engine choice on an annual basis.
– Data Sharing: Google is required to share certain search data with competitors, facilitating the improvement of rival search products. ([igeeksblog.com](https://www.igeeksblog.com/google-apple-search-deal-antitrust-ruling/?utm_source=openai))
Despite these stipulations, the Department of Justice (DOJ) and a coalition of states have filed an appeal against Judge Mehta’s ruling. They argue that the decision does not sufficiently address the anticompetitive nature of Google’s agreements and are seeking more stringent remedies.
The outcome of this appeal could have significant implications for both Google and Apple. For Google, a reversal could lead to the loss of its default status on Apple devices, potentially diminishing its search market share. For Apple, the termination of the lucrative agreement with Google could result in a substantial revenue loss. In 2022, Google reportedly paid Apple $20 billion to maintain its position as the default search engine on Safari. ([macrumors.com](https://www.macrumors.com/2024/08/05/google-search-antitrust-monopoly/?utm_source=openai))
Industry analysts have weighed in on the potential impact. J.P. Morgan’s Samik Chatterjee views the initial ruling as a positive outcome for Apple, suggesting that the ability to renegotiate contracts annually turns this into a manageable risk. ([appleinsider.com](https://appleinsider.com/articles/25/09/03/wall-street-analysts-bullish-on-apple-google-search-deal-remaining-intact?utm_source=openai))
Conversely, Jefferies analysts predict that the DOJ is very likely to ban Google’s search deal with Apple. They estimate that such a ban could lead to an 8% to 11% decline in Apple’s stock price, given the significant revenue generated from the agreement. ([fortune.com](https://fortune.com/2024/10/16/apple-google-search-deal-antitrust-doj-jeffries/?utm_source=openai))
As the appeal progresses, both companies are exploring alternative strategies. Apple is reportedly considering the development of its own search engine to reduce reliance on Google. Meanwhile, Google is enhancing its search capabilities and exploring partnerships with other device manufacturers to maintain its market position.
The tech industry is closely monitoring the developments of this case. The final decision could reshape the dynamics of search engine partnerships and set a precedent for how antitrust laws are applied to digital markets.
