Tag: Google

Apple is trying hard to protect its big money deal with Google as Google faces legal action for breaking antitrust rules, but the court isn’t helping. Recently, Apple asked for an urgent pause in the case to join in, but the judge said no and decided to keep the case moving forward.

Google Logo Feature Slack

Back in November, Apple wanted a bigger say in how the case would proceed, arguing that Google shouldn’t keep breaking the law. The court turned them down, so Apple appealed, but appeals take time. While waiting, Apple asked for the case to stop, but the judge didn’t agree.

The court believes Apple hasn’t shown it would be badly hurt without this pause, nor has it clearly stated why it needs to be more involved or what new information it could add. The judge also feels that there’s no clear error in the first decision to keep Apple out of the lawsuit. Plus, it’s important to keep moving to stop Google from continuing these illegal actions.

The court’s ruling pointed out that this case has been going on for over four years now, and any delay would be significant. Moreover, the court found that Google broke the law by making deals with companies like Apple to keep its monopoly in search and ad markets. Allowing Apple’s request for a pause would just let this illegal activity go on, which isn’t good for the public.

Last year, Google was found guilty of these antitrust violations, with its deal with Apple being a key issue. Google gives Apple billions yearly to be the default search in Safari, and this was deemed illegal. The U.S. government wants to stop Google from making such deals with Apple and others. If Google can’t continue these agreements, Apple could lose billions, yet would still need to offer Google as a search option.

Google might also face tougher penalties like selling Chrome or separating Android from services like Google Search and the Google Play Store. Apple worries that Google will focus on protecting these assets over their search deal, which is why Apple wants to intervene.

In their filing for a pause, Apple argued, “If we can’t resolve our appeal before or during the remedies trial, we might just have to watch as the government pushes for harsh changes that could stop us from working with Google for ten years.”

Apple is now pushing to speed up its appeal to join the lawsuit against Google, with the next phase of the case due to start in April. If they can speed things up, their appeal might be heard before then.

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The big deal between Google and Apple, worth $20 billion a year for search rights, was found to break competition laws last summer. Although Apple isn’t on trial, what happens in this case could change things a lot for them. So, Apple has asked to slow down the court process.

Apple Wants a Say in the Case

Just a few days ago, Apple tried to get its witnesses into Google’s trial but was turned down. Apple isn’t accused of doing anything wrong, but they argued that Google can’t look out for Apple’s interests anymore because Google is busy protecting itself from claims that could break up its business.

Since they couldn’t bring their witnesses, Apple has now asked for a pause in the court case. They say they need this to keep their rights safe while they appeal the decision.

Their latest court document explains:

“If we don’t pause this case, Apple could be hurt in ways we can’t fix later. We might lose our chance to be part of deciding what happens next, like at the trial itself, while they decide on our rights. This gets even worse because of what the other side said in our last meeting.”

The document also mentions that courts often allow such delays when someone wants to appeal a decision about joining a case, and Apple hopes this court will agree too.

If Apple can’t join in the way they want, they have a backup plan:

“At the very least, the court should let Apple see all the case documents as someone not officially in the case until the higher court decides.”

No matter what, Apple thinks they need to be involved in the court process to some extent to avoid serious damage to their interests.

Apple is fighting to save its huge money-making deal with Google, which is under threat because Google was found to break competition laws. Apple has asked the court dealing with Google’s legal battle with the U.S. government for some extra time, so they can argue their case before any final decisions are made.

The U.S. Department of Justice took Google to court over unfair competition in the search market back in 2020. After a long fight, the DOJ won. A big part of this lawsuit was Google’s agreement with Apple, where Google pays billions each year to be the first choice search engine on Apple’s Safari browser. The judge ruled that this deal was against competition laws and helped Google keep its top spot in the search engine world.

The U.S. government wants to stop Google from making such deals with Apple and other companies, which would hit Apple’s earnings hard. For instance, in 2022, Google paid Apple around $20 billion. Apple already tried to get more involved in the case as the solutions were being discussed, but the court said no because of timing issues. Apple is now appealing that decision and wants a pause while the appeal is considered.

Apple argues that since its deal with Google is on the line, it should have the right to join the discussion, warning that without this pause, they could be seriously harmed.

If Apple can’t join in the legal proceedings, they won’t be able to present their own evidence or arguments. If the appeal drags on until or after the trial for solutions starts, Apple might just have to watch, unable to speak or defend itself, while the government pushes for changes that directly affect Apple, like banning any business deals with Google for ten years.

Besides stopping deals like this one, the U.S. Department of Justice also wants to go further, suggesting Google should sell its Chrome browser and separate Android from services like Google Search and the Google Play Store. Google has a lot to lose and might focus more on saving Chrome than its deal with Apple.

When Apple first wanted a bigger say in the case, they argued that Google can’t properly look after Apple’s interests anymore because the case covers so much ground. The DOJ, predictably, doesn’t want Apple in the part of the trial where solutions are decided, which is due to start in April.

If the court rules against Google paying Apple to be the default search on Safari, Apple would still have to offer Google Search as an option, but they wouldn’t get paid for it anymore.

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The internet landscape is dominated by a few key players, and the relationship between Apple and Google is a fascinating one. Recently, Eddy Cue, Apple’s senior vice president of services, made headlines by declaring the company’s continued commitment to Google as the default search engine on its devices. This decision, fueled by a multi-billion dollar deal between the two giants, raises questions about competition, user privacy, and the future of search itself.

A Symbiotic Partnership: Billions and Brand Loyalty

The financial incentive for Apple’s stance is undeniable. Google reportedly pays a staggering $20 billion annually to maintain its position as the default search engine on iPhones, iPads, and Macs. This hefty sum translates to a significant revenue stream for Apple, with an additional 36% of ad revenue generated from Safari searches finding its way back to Cupertino. The partnership also fosters brand loyalty for both companies. Google benefits from the massive user base of Apple devices, while Apple leverages Google’s established search technology, ensuring a seamless user experience.

Beyond the Money: Resources and Innovation

However, Eddy Cue’s statement goes beyond just financial gain. He argues that developing a new search engine from scratch would be a resource-intensive endeavor, demanding “billions of dollars and many years.” This investment would divert focus away from other areas of Apple’s innovation pipeline, potentially hindering the development of groundbreaking new products and services.

Furthermore, Cue emphasizes the dynamic nature of search technology. Artificial intelligence (AI) is rapidly transforming the way searches are conducted and interpreted. Building a competitive search engine would require constant investment in AI research and development, a gamble with an uncertain payoff.

The Privacy Conundrum: Targeted Ads vs. User Choice

A key sticking point in the debate concerns user privacy. Apple prides itself on its commitment to data protection. Building a successful search engine often relies on targeted advertising, a practice that raises privacy concerns. Cue acknowledges this, highlighting that Apple currently lacks the infrastructure and expertise necessary to navigate the world of targeted advertising at scale.

Interestingly, despite Google being the default option, users retain the ability to choose alternative search engines like Yahoo!, Bing, DuckDuckGo, or Ecosia. This element of user control adds another layer to the conversation.

Regulators Step In: Balancing Competition and Revenue

The Department of Justice’s (DOJ) intervention in 2023 throws a wrench into the well-oiled machine of the Apple-Google partnership. The DOJ accuses Google of anti-competitive practices, with the search engine deal used as evidence. Regulators have proposed two remedies:

1. Maintaining Google as the default search engine but stripping Apple of ad revenue: This approach aims to foster competition by creating a disincentive for Apple to favor Google.
2. Preventing future deals between Apple and Google altogether: This more drastic measure seeks to dismantle the existing partnership and force both companies to compete on a level playing field.

Cue vehemently disagrees with both options. He argues that Apple should retain the right to choose partnerships that best serve its users. He believes that the DOJ’s remedies would ultimately “hamstring Apple’s ability to continue delivering products that best serve its users’ needs.”

The Future of Search: A Collaborative Landscape?

As the battle between regulators and tech giants continues, the future of search takes center stage. Will the partnership between Apple and Google endure, or will a more fragmented landscape emerge? Perhaps the answer lies in fostering collaboration between tech companies and regulators, creating a framework that promotes innovation, user privacy, and healthy competition within the search ecosystem.

One thing is certain: the current landscape is far from static. The next generation of search experiences may be powered by AI, prioritize privacy, and cater to user needs in ways we can only begin to imagine. As companies like Apple and Google continue to navigate this ever-evolving landscape, the fight for search supremacy promises to be a fascinating one to watch.