The judge's ruling allows Apple to retain the default search agreement with Google, a partnership that earns $20 billion annually, receiving the "green light."
A U.S. judge ruled that the search agreement between Apple and Google is not prohibited, which brings Apple about $20 billion in revenue each year. The judge allowed Google to pay fees to browser developers but required the promotion of other search engines and the provision of choices. Apple's stock price rose 4.3% in after-hours trading, while Google's stock price also increased by 8.7%. This ruling is central to the lawsuit filed by the U.S. Department of Justice against Google
According to Zhitong Finance APP, a U.S. judge did not prohibit Apple (AAPL.US) from its lucrative search agreement with Google (GOOGL.US), which brings in about $20 billion in revenue annually for the iPhone manufacturer, leading to a rise in Apple's stock price in after-hours trading.
Although Judge Amit Mehta ruled in an antitrust case that Google cannot enter into exclusive internet search agreements, he allowed it to reach default search engine agreements with browser developers.
"Allowing Google to pay browser developers like Apple," he wrote in the ruling. However, Mehta also pointed out that partner companies must promote other search engines, provide alternative options across different operating systems or privacy modes, and allow changes to the default search engine settings each year.
"Cutting off Google's payments would almost certainly cause significant harm to distribution partners, related markets, and consumers, and in some cases, even devastating downstream harm, so a broad payment ban should not be implemented."
Currently, Apple shows preference for Google’s search engine by giving it prime placement in the Safari search bar on computers and mobile devices. Users can choose to switch to other options like Microsoft's Bing or DuckDuckGo. Apple also changed its iOS software two years ago to allow the use of different search engines in privacy mode.
Apple's stock price rose as much as 4.3% to $239.50 in after-hours trading, having fallen 8.3% year-to-date as of the close. Google's stock also saw an increase, rising by as much as 8.7%.
Apple's search partnership agreement is a core aspect of the U.S. Department of Justice's landmark lawsuit against Google. The ruling announced on Tuesday also allows Google to retain its popular Chrome web browser.
Mehta ruled last year that Google illegally monopolized the online search and search advertising markets, and subsequently held a three-week hearing in April to determine remedies
