US antitrust lawsuit against Google: Apple not allowed in the dock

Apple is no longer allowed to intervene directly in the major US proceedings against Google: The competent court has now rejected an application by the iPhone company, which wanted to appear as a co-defendant after all – It is far too late for that. "Apple knew (or should have known) at the beginning of the legal dispute at the end of 2020 that the lawsuit would have direct consequences for its own contractual rights," the judge wrote in his reasoning. It has also been clear for months that Google may no longer be able to "adequately defend Apple's interests" in the final part of the proceedings, according to the judge. (Case No. 1:20-cv-03010, USA v. Google, United States District Court For The District Of Columbia).

Google contributes to Apple's profits

In the US government's antitrust case, the court ruled last August that Google was illegally exploiting its monopoly position in the search engine market. In the proceedings, it became public that Google pays a good 26 billion US dollars per year to browser and device manufacturers to remain the standard search engine. The lion's share goes to Apple because Google is also pre-selected in Safari on the iPhone: according to a top Apple manager, Google paid around 20 billion US dollars for this prominent position in 2022 alone. This is a significant sum even for Apple; according to estimates, the deal alone could account for between 10 and 20 percent of the company's profits.

It has been clear since November that the US government has drastic consequences in mind for Google, such as the spin-off of the Chrome browser. But search deals worth billions are also on the hit list, which would ultimately hit the recipients of this money hard – Alongside Apple, Firefox maker Mozilla is one example.

Apple does not want to develop its own search engine

Even without the billion-euro deal with Google, Apple would not have developed a competing search engine, argued Apple's head of services Eddy Cue in a statement. This would take years and cost billions, plus search technology is currently undergoing a radical change due to AI – and Apple lacks the know-how for the search advertising business. Cue has already defended the contract with Google in the court proceedings, saying that there is no "real alternative to Google".

If Apple were now allowed to defend itself as a co-defendant, this would possibly bring other affected parties such as other browser and smartphone manufacturers onto the scene, according to the judge. This would make the proceedings even more complex and protracted. However, as a "friend of the court" (amicus curiae), Apple could continue to make submissions in the matter and present its position. In addition, Cue is once again on Google's witness list and can therefore speak directly in court.

(lbe)