--- title: "Why Apple has a lot to lose in the legal dispute between Google and the US" description: "Why Apple has a lot to lose in the legal dispute between Google and the US" author: "Saumya Mishra" published: 2023-10-12 updated: 2023-10-13 canonical: https://www.mindstick.com/news/3407/why-apple-has-a-lot-to-lose-in-the-legal-dispute-between-google-and-the-us category: "technology" tags: ["apple"] reading_time: 2 minutes --- # Why Apple has a lot to lose in the legal dispute between Google and the US Google is currently embroiled in a contentious legal battle with the [US Department](https://answers.mindstick.com/qa/101090/what-is-the-role-of-the-us-department-of-treasury) of Justice, facing allegations of abusing its market dominance in an antitrust case. The core of this case revolves around the longstanding deal between Google and Apple, which designates [Google Search](https://www.mindstick.com/articles/12393/google-search-adds-new-personal-tab-to-showcase-only-your-content-results) as the default [search engine](https://www.mindstick.com/services/search-engine-optimization) on iPhones. Recent reports indicate that the financial terms of this deal are even more substantial than previously thought. According to a Bernstein financial report, the Information Services Agreement (ISA) between Google and Apple is estimated to be worth $18-20 billion in annual payments from Google to Apple. This agreement represents a significant portion of Apple's annual operating profits, [accounting](https://www.mindstick.com/articles/13034/challenges-for-accounting-students) for approximately 14-16 percent. If Google loses the antitrust case and is compelled to terminate the deal, it would have a substantial impact on Apple's revenues. Nevertheless, the report suggests that Apple might explore [alternative](https://www.mindstick.com/forum/2324/what-is-the-alternative-to-the-mvc) options, either by continuing the deal outside the [United States](https://www.mindstick.com/news/2228/the-united-states-claims-seagate-broke-export-laws-by-selling-huawei-hard-drives) or entering into a similar agreement with another search engine provider. During the case, Microsoft executives were called as witnesses and proposed that Bing Search could be a viable alternative if Apple were to discontinue its agreement with Google. Apple, however, has maintained that it uses Google Search as the default engine because it is considered the best [option available](https://answers.mindstick.com/qa/93403/is-there-any-boost-option-available-at-mindstick). Being the default search engine on iPhones is highly lucrative for Google, as it is a significant source of search [advertising](https://www.mindstick.com/articles/13080/wikipedia-the-most-powerful-advertising-platform-of-the-digital-age) revenue. Google reportedly pays Apple close to $20 [billion annually](https://answers.mindstick.com/qa/38716/name-the-international-financing-body-which-estimated-that-india-s-aadhar-id-helped-the-government-save-1-billion-annually-by-reducing-corruption-and-leakages) for this privilege. The Bernstein report also suggests that Apple would likely continue to demand a [commission](https://answers.mindstick.com/qa/62212/who-has-been-elected-as-the-first-female-president-of-the-european-commission), estimated to be in the range of 25-30 percent, for providing access to the search advertising revenues generated from its user base, which exceeds $60 billion. --- Original Source: https://www.mindstick.com/news/3407/why-apple-has-a-lot-to-lose-in-the-legal-dispute-between-google-and-the-us Copyright © MindStick Software Pvt. Ltd. This Markdown version is provided for developers, AI systems, and offline reading.