Apple will not be allowed to intervene in an upcoming antitrust hearing that could impact its lucrative $20 billion search agreement with Google. The company’s legal team missed the deadline to file the request, preventing Apple from directly participating in the proceedings.
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Google Faces Antitrust Scrutiny Over Search Engine Deals
The U.S. Department of Justice (DOJ) is continuing its antitrust case against Google over agreements that made Google the default search engine in web browsers, including Apple’s Safari. This arrangement has generated billions for Apple, but Apple will have little influence in the upcoming hearing despite the financial stakes.
On Friday, the D.C. Circuit Court of Appeals upheld a prior ruling by U.S. District Court Judge Amit Mehta. The decision, reported by MediaDailyNews, confirms that Apple will not be allowed to present live testimony or cross-examine witnesses during the trial.
Apple initially filed a motion on December 23, requesting to be a participant in the remedy trial due to the significant financial implications. However, Judge Mehta ruled that Apple’s request was too late, as the company waited until it felt its interests were “no longer adequately protected” rather than seeking involvement at the start of the case in 2020.
Although Apple is barred from direct participation, it can still influence the proceedings. The company can submit written testimony and file amicus curiae (friend-of-the-court) briefs, ensuring its perspective is heard, albeit not at the desired level.
Antitrust Ruling and Its Implications for Google and Apple
Following a ten-week trial in August 2024, the court ruled that Google had violated antitrust laws by maintaining an illegal monopoly over search and advertising. One of the key elements of this case was Google’s substantial payments to Apple to secure its position as the default search engine in Safari, reinforcing its dominance among iPhone users.
Among these payments, a notable transaction in 2022 saw Google transfer $20 billion to Apple as part of their agreement. This arrangement has been central to discussions on how Google maintained its market control.
Proposed Remedies: A Potential Shakeup in the Search Industry
In October 2024, the DOJ proposed several measures to break up Google’s stronghold—one primary recommendation involved forcing Google to divest from its Chrome browser to reduce its influence over search. The DOJ formally filed this recommendation in March.
Google, in response, has suggested alternative remedies, including adjusting its contracts with “browser companies” such as Apple. One of these proposed changes would allow browser developers to implement different default search engines across platforms and permit users to switch providers every 12 months.
Apple’s Concerns and Future Strategy
Apple has expressed significant concerns over these potential changes. Senior Vice President of Services Eddy Cue stated in December that Apple has no interest in developing its search engine. Instead, the company prefers to continue working with Google rather than investing billions of dollars and several years in creating a competing product.
After being denied direct involvement in the trial, Apple took further legal action in January, filing a motion to delay the proceedings altogether. However, the court’s decision on Friday reaffirmed Apple’s restricted role. The appellate court announced it would finalize the order on March 28, giving Apple a brief window to review its options before the ruling is set in stone.
Conclusion
The DOJ’s antitrust case against Google is shaping to have far-reaching consequences for the tech industry. While Google’s monopoly on search is under scrutiny, Apple has also been profoundly impacted by its multi-billion-dollar agreements with the search giant. Although Apple has been denied direct intervention in the case, its ability to submit written testimony and amicus briefs keeps it involved at a lower level. The outcome of this case could significantly reshape search engine agreements and competition in the digital marketplace.
