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Google’s search engine makes Apple a centerpiece of the Justice Department lawsuit



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Google’s search engine makes Apple a centerpiece of the Justice Department lawsuit


Google’s deal with Apple Maintaining its position as the default search engine for iOS devices is reportedly at the core of a recent Justice Department lawsuit against the tech giant.

On Tuesday, the Justice Department filed an antitrust lawsuit against Google that accused the company of abusing its power over the Internet search industry. The deal with Apple and other companies is cited as part of the department’s argument.

Within Google, the prospect of losing the default position was thought to be so dire that internally it was dubbed “Code Red,” according to a new report from.

Google search is the default search engine in Safari and for Siri on iPhone and iPad devices. According to him, this has been an important source of income for both companies. In 2018, for example, Google is said to have paid Apple more than $ 9 billion to maintain the arrangement.

Although no company has confirmed how much the deal is actually worth, the lawsuit indicates that it represents between 15% and 20% of Apple’s annual earnings. That suggests payments of up to $ 11 billion.

Furthermore, the prominence of the agreement between the two tech giants in the Justice Department’s lawsuit likely indicates that it will intercede in the relationship.

In 2018, the department says: Apple CEO Tim Cook and Alphabet / Google CEO Sundar Pichai met to discuss how both companies could work together to drive search revenue growth. After the meeting, a senior Apple executive told a Google counterpart that “our vision is that we work as one company,” the lawsuit states.

Google, for its part, said it could challenge the litigation. In a response Tuesday, the search giant called the lawsuit “deeply flawed” and claimed that users choose, and are not required, to use Google search.

The Mountain View-based company has come under antitrust scrutiny in the US and elsewhere. In early October, the House Judiciary Committee concluded a year-long investigation that found that Google and other tech giants enjoy monopoly power over their respective domains.