Apple could be on the verge of losing its lucrative $20 billion annual agreement with Google following a recent antitrust ruling. The court has deemed Google’s payments to Apple for being the default search engine on Safari illegal, raising concerns about how Apple will handle the potential revenue shortfall.
The deal, which has been a significant source of revenue for Apple’s services division, could soon be considered void. Google’s hefty payments, which cover roughly a quarter of Apple’s services revenue, have been central to keeping Google Search as the default engine in Safari. This arrangement benefits Google by providing access to a high-value user base and generating substantial ad revenue.
Despite the anticipated loss, Apple’s services sector remains robust, with $78.13 billion in revenue, including the $20 billion from Google. The company is expected to offset the potential revenue loss through continued growth in its services division. However, the ruling’s impact on the ongoing agreement between Apple and Google is still unfolding.
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