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DOJ Antitrust Ruling Threatens Google's $25 Billion iPhone Search Deal

The Department of Justice's antitrust victory against Google could end its exclusive search agreement with Apple, impacting both tech giants' revenues.

  • Analysts predict the DOJ will ban Google from paying Apple to be the default search engine on iPhones, a deal estimated at $25 billion annually.
  • Google's exclusive agreements have been deemed anticompetitive, contributing to its monopoly in the online search market.
  • The potential ban could significantly impact Apple's pretax profits, which derive 20% from this deal, though the effects may take years to materialize.
  • Google plans to appeal the ruling, with the final legal outcome possibly taking three to eight years to resolve.
  • A DOJ-ordered breakup of Google's assets, such as its Chrome browser or Android operating system, is also under consideration as a remedy.
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