Apple Is Not Losing Google's Billions Without a Fight

Apple, currently valued at approximately one and a half times that of Google, still relies heavily on its partnership with the search engine giant to maintain its business momentum. This dynamic became especially clear on Monday, as Apple filed documents expressing its intention to participate in the penalty phase of the Justice Department's antitrust case against Google. The case had seen Google lose in August, and it is now engaged in discussions with the government regarding the potential remedies that could be imposed.

The Department of Justice (DOJ) has proposed various significant changes, including a possible breakup of Google, requiring the tech company to provide essential search and user data to competitors, and potentially halting the substantial financial agreements Google has with partners like Apple.

Reports suggest that Google's payments to Apple amount to around $20 billion each year, which affirms Google's position as the default search engine on devices such as the iPhone. While Apple has not publicly confirmed specific figures in its filings, it has indicated the importance of safeguarding its commercial interests.

Analysts believe that these payments from Google constitute nearly pure profit for Apple, given the minimal additional costs involved in generating this revenue. For Apple, the estimated $20 billion represents roughly 16% of its reported operating income for the fiscal year that concluded in September.

Apple, Google, Antitrust