Apple might lose its lucrative $20 billion deal with Google following a recent court ruling declaring the payments illegal under antitrust laws. Google’s hefty annual payments to Apple have made its search engine the default on Safari, but this practice is now under scrutiny for maintaining Google’s monopoly in web search.
The court’s decision challenges the agreement where Google pays Apple to remain the default search provider. This deal accounts for roughly a quarter of Apple’s services revenue, a significant sum that could impact the company’s bottom line if it ceases.
Despite this potential setback, Apple’s services sector remains robust, with $78.13 billion in revenue, including the $20 billion from Google. As Apple continues to grow its services, it may offset the loss, but the impact of the ruling on the future of the agreement remains uncertain.
Stay updated on this developing story here.