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The Department of Justice could block Google (google) Apple’s default search engine (AAPL) as part of the iPhone Antitrust victory against tech giants.
In August, a federal judge ruled that Google has a monopoly on the online search engine market. Jefferies analyst (jeff) said a “very likely” outcome is that the Justice Department could choose to prohibit Google from paying Apple to be the exclusive search engine for popular smartphones.
If that happens, it could be a big hit to Apple’s profits. Analysts estimate the deal will generate about $25 billion a year in revenue, about 6.3% of Apple’s revenue and a whopping 20% of its pre-tax profits.
The ban could be in place for several years and may not completely prevent Google from entering into a revenue-sharing agreement with Apple. Instead, it is two technology giants exclusive It’s an agreement that shuts out other search engines.
Apple stock was flat as of Thursday morning, trading at $231.96 per share. The technology giant has a market capitalization of $3.52 trillion, the largest in the world.
Federal Judge Amit Mehta said in his ruling: Exclusive deals with companies like Google and Apple Advertiser prices could be raised without any repercussions.
to Dealing with Google’s monopoly The Department of Justice stated the following regarding the search engine market: Submission to court Earlier this month, the company announced it was seeking remedies to prevent and restrain its current and future ability to maintain control.
This includes “behavioral and structural remedies that prevent Google from using products such as Chrome, Play, and Android to take advantage of Google Search and Google Search-related products and features.” It could also mean the dissolution of the company.
While the ruling and subsequent Justice Department proposal will have a ripple effect on the iPhone maker, Apple stock has been largely unaffected by the ruling. Mr. Jeffries pointed out that: Sales results Although recently released iPhone16 and the deployment of its artificial intelligence functions, apple intelligenceis more important as a short-term factor.
Analysts fear that market expectations for next year’s iPhone, the iPhone 17, are so high that we will have to wait until the iPhone 18 in 2026 for the smartphone’s AI hardware technology to be fully developed. He said he is doing so.
