Apple Challenges Google's Representation in Antitrust Trial

Apple Inc. (AAPL) is set to participate in an important U.S. antitrust trial involving Alphabet Inc. (GOOG).

What is Happening: Apple is taking this step as it aims to defend its lucrative revenue-sharing agreements with Google, which contribute significantly to Apple's income, according to reports.

Recent court documents filed in Washington indicate that Apple has decided against developing its own search engine to compete with Google, regardless of whether the payment arrangements continue.

Apple stated, “Google can no longer adequately represent Apple's interests: Google must now defend against a broad effort to break up its business units.”

The company is organizing to present its witnesses during the trial scheduled for April.

The prosecution's aim is to demonstrate that Google should take various actions, including selling its Chrome web browser and possibly divesting its Android operating system, to revive competition in the online search segment.

In 2022, Apple's agreement with Google reportedly generated around $20 billion.

Alphabet did not provide immediate comments regarding the situation.

Importance of this Case: On December 20, Google responded to suggested remedies in its search distribution case presented by the DOJ, emphasizing non-exclusivity and greater flexibility to mitigate regulatory challenges.

Last year, Apple’s Eddy Cue defended the massive deal with Google, asserting it was the best option available at the time, despite concerns regarding Google’s privacy practices.

Market Impact: Following the news, Alphabet's Class A shares rose by 0.76%, closing at $196.11, while Class C shares increased by 0.81%, finishing at $197.57. Meanwhile, Apple shares saw a rise of 1.15% during regular trading, closing at $258.20 but slight decreased by 0.039% in after-hours trading.

Photo Credit: Koshiro K on Shutterstock

Apple, Google, Antitrust