Google's multibillion-dollar search engine deal with Apple at high risk in monopoly case

Core Viewpoint - A federal judge is expected to target Google's multibillion-dollar search engine deals with companies like Apple as part of a remedy for its illegal online search monopoly, which could lead to significant changes for the tech giant valued at $1.8 trillion [1][2]. Group 1: Legal Proceedings and Potential Outcomes - US District Judge Amit Mehta will determine the remedies for Google following a ruling that it violated US antitrust law by maintaining a monopoly in its online search business [2]. - The Department of Justice (DOJ) is seeking to force Google to end its exclusive agreements with companies like Apple and potentially divest its Chrome web browser if competition does not increase in the search market [3][6]. - Experts believe that the judge will likely order Google to stop paying for exclusive default status with companies, which could significantly impact its business model [4][5]. Group 2: Financial Implications - In 2021, Google paid over $26 billion for search placement deals, with $20 billion going to Apple in 2022 to secure its position as the default search engine on Safari [6]. - The DOJ's proposed remedies are seen as substantial, with the potential for significant changes to Google's financial arrangements and market strategies [9]. Group 3: Market Dynamics and Competition - Google's exclusivity deals with companies like Apple are viewed as attempts to control the market and suppress competition, making them a focal point for the DOJ's case [8]. - The DOJ aims to prevent Google from leveraging its search monopoly to dominate emerging markets, such as AI, indicating a broader concern about competitive practices [13]. Group 4: Company Responses - Google's legal team has characterized the DOJ's proposed remedies as a "wish list" for competitors, arguing that they would undermine the company's innovations and user experience [11]. - Google has expressed concerns that the DOJ's proposals could jeopardize user privacy and security, as well as hinder its AI development efforts [12].