Apple Secures $20 Billion Google Search Pact As Judge Limits Antitrust Remedy

(MENAFN- The Arabian Post) Apple shares rallied following a pivotal ruling from U. S. District Judge Amit Mehta, who allowed the technology giant to continue receiving payments-estimated at around $20 billion annually-for default search placement in Safari, while imposing targeted restrictions on exclusivity and data practices. The verdict, delivered on 2 September 2025, represents a significant reprieve for Apple amid ongoing antitrust scrutiny.

The ruling bars Google from enforcing exclusive distribution agreements but permits continued revenue-sharing with browser developers such as Apple. Judge Mehta emphasised that banning such payments outright could impose“crippling” downstream harms on partners and consumers, underscoring the need for restraint in remedying market monopolisation.

Investor reaction was immediate: Apple stock climbed around 3.8–4.3 per cent, closing at approximately $238.47 on 3 September, buoyed by the clarity restored to its services revenue outlook. Analysts-like Wedbush's Daniel Ives-described the outcome as“very bullish”, with positive ratings and increased price targets following the development.

The decision also spared Google from a forced divestiture of Chrome or Android, a measure sought by the Department of Justice. Instead, it mandated that Google share search data with competitors and avoid future exclusive tie-ups. The judge reasoned that the rapid emergence of AI-driven alternatives, such as chatbots and generative models, may gradually erode traditional search dominance.

Apple has long defended its search agreement. Its Senior Vice President, Eddy Cue, testified during the remedies phase of the case, arguing that the deal benefits users and that enforcing its termination could undercut both revenue and future innovation. Cue acknowledged AI's potential disruption to search behaviour but noted that viable replacements were still emerging.

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Critics, including antitrust advocates and several tech firms, denounced the ruling as a“slap on the wrist”, arguing that it fails to curb Google's entrenched power. Groups such as Yelp, DuckDuckGo, and Epic Games contended that the measures do little to foster genuine competition, and lawmakers called for further congressional action.

From a financial perspective, the verdict stamps the services revenue stream as stable-vital at a time when iPhone sales growth is slowing and trade tensions persist. Industry observers suggest the preserved search pact may dampen Apple's incentive to develop an in-house search offering, as the current arrangement remains lucratively in place.

Google may appeal the ruling, potentially delaying full implementation for years. Judges have signalled openness to revisiting the case if the imposed behavioural remedies prove ineffective.

The development comes as the broader antitrust movement in the United States appears to be losing momentum. Despite bipartisan efforts and prior momentum, enforcement agencies face increasing difficulty imposing structural breaks in fast-evolving digital markets-especially as AI reshapes competitive dynamics.

The ruling therefore shifts the competitive focus back to technological disruption rather than purely legal action. Apple emerges with its high-value search revenue intact, while the regulatory landscape has been altered-but not fundamentally dismantled.

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