Google loses in court: paying to be the default search engine is illegal

A federal judge in the United States has determined that Google’s agreement with Apple to be the default search engine on devices like the iPhone violates antitrust laws. As reported by Bloomberg, this decision, which stems from a long legal battle with the United States Department of Justice, could reshape the landscape in the search sector, especially now that we have Apple Intelligence among us.

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You can’t pay to be the default search engine

For years, Google has paid billions to Apple to be the default search engine on Safari. In 2022, this figure reached 20 billion dollars, as far as we know. These sums, which represent a substantial flow of income for Apple, have been criticized for limiting competition and maintaining Google’s market dominance, which controls approximately 95% of the smartphone search market.

In this regard, Judge Amit Mehta, who presided over the case, concluded that Google has acted as a monopoly. By paying device manufacturers to secure its dominant position, Google has not only reinforced its monopoly but has also prevented other search engines from competing fairly. The practice, therefore, constitutes a violation of Section 2 of the Sherman Act, which prohibits monopolistic activities.

This judicial resolution represents a considerable challenge for Google if, after the appeals, the sentence is upheld. For Apple, this would mean losing a source of income, but it also marks a key moment for other search options.

Apple was not directly named as a defendant in the case, but Google’s agreement was a central element in the Department of Justice’s lawsuit. During the trial, testimonies from several Apple executives, including services chief Eddy Cue and machine learning head John Giannandrea, were presented, who defended the company’s practices by stating that Google provides much superior search results compared to the competition.

Judge Mehta has not yet determined what specific measures will be taken to remedy these anticompetitive practices by Google, but possible sanctions could include the prohibition of future agreements of this kind.

The search landscape is going to change

This failure, therefore, not only has immediate financial implications but could also inspire broader changes. In this context, it is worth noting the arrival of Apple Intelligence. It is also worth adding two more variables to the puzzle: the integration of OpenAI with Apple’s systems and the introduction of SearchGPT, currently in the testing phase.

If we add to this the possibility that Apple decided to launch its own search engine, something that rumors have already talked about repeatedly, the situation becomes really interesting. For now, we will have to wait for a possible appeal, but in the meantime, the pieces are starting to move.

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However, this decision sets an important precedent in regulating certain practices in the technology sector. Although nothing prevents users from setting Google as their search engine even if it is not the personalized option, it is clear that it is the ideal time for a change in how we search on the internet.