Apple Throws Elbows to Stop DOJ From Jacking Their $20 Billion Deal with Google (Things Get Zesty)

Would ya look at that: Apple just filed its RSVP to the legal fight of the year—the DOJ’s antitrust showdown with Google. And no, they’re not sitting in the cheap seats—Tim Cook’s crew wants a front-row spot to defend the sweet, sweet $20 billion Google ponied up in 2022 to stay the default search engine on Safari. Turns out, splitting ad revenue with Big G is Apple's version of a side hustle, and they’re not about to let the Department of Justice (or anyone else) mess with their cash flow.

(Source: Giphy) 

Now ICYMI, the DOJ is coming for Google… and they’re coming for them hard. The government’s calling the OG search company for monopolizing search and search advertising, and they’re pushing for some big-time consequences—like forcing Chrome into a corporate divorce settlement. Apple, meanwhile, has been watching carefully from the sidelines, but now they’ve officially asked the court to let them join the case, claiming they can’t count on Google to defend Apple’s very specific interests. Translation: “We’re not about to let Sundar & Co. fumble this bag and cost us billions.”

(Source: Reuters) 

Which in reality, makes sense considering that at the heart of this drama lies the Information Services Agreement, which basically makes Google the default search engine on Safari. In exchange, Google slides a fat check Apple’s way for all the search traffic coming from iPhones, iPads, and Macs. In 2022, this deal was worth a cool $20 billion, but if the DOJ gets its way, Google might have to stop forcing its search engine into default deals. And that leaves Apple with two awkward options: Number 1. Let Google stay the default search engine for free (a.k.a. no revenue-sharing agreement) or Number 2. Kick Google to the curb, forcing Safari users to DIY their search engine preferences.

As you can see, neither option is great for Cupertino. The first one means losing billions in easy money, while the second risks ticking off Apple’s user base, who—let’s face it—just want Google Search and not some knockoff alternative. And don’t even think about Apple building its own search engine. They’ve already shut that down, listing every excuse in the book like: too busy focusing on “other growth areas” (read: selling you another $999 monitor stand or a phone that looks and acts the same way as it did four years ago). So it’s definitely understandable as to why Apple is willing to sell its soul to lawyers to make sure this deal stays. 

(Source: Medianama) 

Especially since experts say Apple could lose up to one-third of its revenue by 2028 if the DOJ’s proposals stick. And if that wasn’t bad enough, other countries could jump on the antitrust bandwagon, potentially turning this into a global headache for Apple. 

Oh and did I mention this isn’t just about Safari?  If the DOJ wins, it could force Google to start divesting. We’re talking about Chrome, Android, and maybe even their lunch break playlists—who knows? That’s bad news for Apple, whose entire business model here relies on Google being the king of search.

(Source: Giphy) 

Meanwhile, over at Google HQ, Sundar Pichai is presumably growing biceps from punching so much air. During the company’s Q3 earnings call, he hyped up their next-gen AI tools like Gemini and the growing integration of Google Assistant. Cool story, bro, but none of that solves the fact that losing their grip on iOS queries could sting big time.

Now with that said, Google’s offering to ease up on default agreements with companies like Apple, but they’re not about to give up their revenue-sharing deals. Because again, and let’s be honest here, even in this antitrust hurricane, nobody’s trying to walk away from $20 billion. And ain’t nobody is here to rework their entire search engine routine (I’m talking about myself here).

(Source: Giphy) 

Look, I already have too many things to worry about with plenty of things on my plate. The last task I want to do is relearn and rework my entire search process on my phone (for work, not anything else… sickos). Meaning the fallout of this (if the DOJ gets its way) would result in billions in lost revenue, angry iPhone users, and a whole lot of awkward conversations in corporate boardrooms. 

For now though, Apple’s hoping the court lets them tag in for this fight. Because when $20 billion is on the line, you don’t just sit on the sidelines—you suit up and throw some punches of your own. So yeah, things look to get a bit zesty going forward, but only time will tell if this shakes out or not.

(Source: Wall Street Journal) 

In the meantime, place your bets accordingly friends and filter all of this through a brain-cell. As always, stay safe and stay frosty! Until next time…

P.S. ICYMI, The Pentagon just handed Lockheed Martin an $11 Billion blank check to build its newest F-35 fighter jet fleet—and you bet your a$$ our Congressional Trade Tool spotted some mischievous politicians loading up on Lockheed BEFORE this became official. Meaning, if you’re looking to see where our most fraudulent loyal civil servants are placing their bets to catapult their net worths… Simply click here to try our proprietary Congressional Trade tool with Stocks.News premium today! 

Stocks.News holds positions in Google and Apple as mentioned in the article.