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Google-Apple's $20B+ search partnership secured. Apple's revenue is buffered as iPhone sales slow, while Google maintains search dominance. |
A recent court ruling has given both Google and Apple a major relief, preserving their lucrative search partnership. For Apple, the decision comes at a critical moment as iPhone sales show signs of slowing.
Judge Rejects Breakup Push
U.S. District Judge Amit P. Mehta declined the government’s request to dismantle Google or stop the payments it makes to Apple for keeping its search engine as the default on iPhones. The ruling keeps one of Silicon Valley’s most profitable deals intact.
Apple’s Cushion Against Slowing iPhone Sales
Apple’s iPhone revenue is expected to grow less than 4% in the fiscal year ahead—a soft outlook compared with past years. Continued payments from Google give Apple a financial buffer, adding stability at a vulnerable time for its flagship product.
Search Dominance Remains Secure
For Google, the ruling ensures it keeps its most valuable search pipeline. Default placement on Apple devices drives billions of queries each day, sustaining Google’s powerful ad business and preserving its leadership in online search.
Another Antitrust Battle Still Looms
Even with this win, Google’s legal challenges aren’t over. A separate antitrust case targeting its advertising technology business is still moving forward, keeping regulatory uncertainty alive.
What the Ruling Means Going Forward
The decision locks in the status quo: Apple gains a steady revenue stream while Google protects its dominance. Both companies can celebrate this outcome, but their partnership will remain under scrutiny as regulators keep pressing Big Tech on competition issues.
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