A recent ruling by the DC Circuit Court of Appeals has denied Apple's bid to participate in Google's upcoming antitrust hearing, potentially jeopardizing the tech giant's $20 billion annual search deal.
The court determined that Apple waited too long to join the proceedings, filing its request to participate 33 days after the initial remedy proposal. The judges stated this delay was "difficult to justify."
While Apple can still submit written testimony and friend-of-the-court briefs, it won't be able to present evidence or cross-examine witnesses during the trial. This limitation could impact Apple's ability to protect its valuable search placement agreement with Google.
The deal, worth approximately $20 billion annually, makes Google the default search engine across Apple's Safari browsers on desktop and mobile devices. The arrangement has been mutually beneficial, with Google gaining access to Apple's vast user base and Apple receiving substantial revenue.
The Department of Justice's antitrust case against Google, which the tech company lost in August 2024, could make such default search agreements illegal. The government's position emphasizes that most users never change default settings, effectively giving Google a captive audience on Apple devices.
If the court's final ruling prohibits these types of agreements, Apple will need to explore alternative search providers. However, options are limited given Google's 90% market dominance. While Microsoft's Bing stands as the main alternative, smaller players like Kagi and DuckDuckGo might struggle to meet Apple's requirements.
The case represents the largest government action against a tech company since the Microsoft antitrust trial in the late 1990s. The outcome could reshape the search engine landscape and force Apple to reconsider its search strategy across its product ecosystem.