Google was accused of paying billions to companies like Apple to block competitors
In a key ruling, Judge Mehta said that Google blocked competitors from challenging it in search by paying companies like Apple billions of dollars to make Google Search the default search engine on Apple devices, like the iPhone. Google tried to make the judge understand that Apple agreed to the deal because it was “a no-brainer,” and “a sure thing.”
In other words, Apple believed that, “They [Google] have the best search engine, they know how to advertise, and they’re monetizing really well.” Google’s top search rival Bing, in Apple’s thinking, was “horrible at monetizing advertising.”
Google believes that Judge Mehta made some errors that can be reversed
Google also says that the court erroneously treated the Google-Apple search engine deal as though it made Google Search the exclusive search engine on Safari. This, of course, is not true, as iPhone, iPad, and Mac users can simply use an alternative search engine using the Safari browser. Google also made it clear during the trial that the decision to have a single default search engine for Safari was Apple’s.
Judge Amit P. Mehta who has presided over the Google Search antitrust case. | Image by U.S. Government
Google argued that the deal with Apple does not prevent device manufacturers and browser developers from promoting Bing and other search engines on Safari. Trying to prove to the court that its success with Google Search was not due to having a monopoly, Google said that its success came from creating a “superior search engine through hard work, bold innovation, and shrewd business decisions.”
Judge Mehta told Google that to restore competition in the search engine market, it needed to provide rival search engines with some search data. If Google does win its appeal, the ruling ordering Google to turn over this data would be overthrown. On the other hand, should the ruling by the U.S. Court of Appeals for the District of Columbia Circuit be against Google, the company will be able to appeal to the U.S. Supreme Court.
Apple said that it would never agree to have Bing as its default search engine
Apple SVP of Services and Health Eddy Cue had testified that even though Microsoft had offered Apple 100% of advertising revenue if it made Bing Safari’s default search engine, taking this deal would have made Apple less money. Cue believed that this would happen because Apple device users would drop Bing and use Google.
Noting that Apple device users prefer Google Search over Bing, Cue said that there was no price Microsoft could ever offer [Apple] that would make it more profitable for Apple to make Bing the default search engine. Cue also said that when it comes to deciding which search engine it should choose to be the default for Safari, “we have to pick what’s best for our customers, and today, that is still Google.”
The original trial back in 2024 lasted 10 weeks. By finding that Google had made it difficult for competitors in the search market to compete, the court ruled that Google had violated Section 2 of the Sherman Act.
Apple’s deal with Google gives it 36% of the revenue from Google Search ads generated on Safari
For years, there have been rumors about how much Google pays Apple every year to be the default search engine on the iPhone. During the trial, it was disclosed that Apple’s deal with Google allows it to receive 36% of search ad revenue that is generated by Safari. The judge said that the size of the checks Google wrote to Apple severely limited the number of competitors for Apple’s business.
Testimony during the trial also revealed that in 2022, Google paid Apple $20 billion. That was Apple’s share of the ad revenue earned by Google Search on Safari for that year. The Justice Department will file papers containing its arguments in July.
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