It's possible that Google is no longer the default iPhone search engine

Mere hours after a federal judge ruled that Google runs a monopoly with its search and search advertising businesses, repercussions are already being felt across the tech industry and iPhone users could get their day-to-day lives altered profoundly.

That's because Apple’s lucrative agreement with Google may be at risk following a recent US judge's ruling that determined the Alphabet-owned search giant is operating an illegal monopoly.

Currently, the Big G's search engine is the default on Apple devices. It's possible that's no longer the case, if Google needs to address potential antitrust issues after the judge's ruling. Google might consider ending the deal, a Reuters report reads, quoting Wall Street analysts.

As you probably know, Google paid Apple $20 billion in 2022 to be Safari's default search engine. This figure represents about 36% of the revenue Google generates from search advertising through the Safari browser, as reported earlier.

Should the Google/Apple agreement be terminated, analysts estimate that Apple could experience a 4-6% decrease in its profit. The current contract is set to remain in place until at least September 2026, with Apple holding the option to extend it for an additional two years, as noted documents filed by the Department of Justice in the antitrust case.

Some analysts believe the judge might rule that Google has to stop paying for default placement or that companies like Apple will need to let users choose their search engine instead of setting one by default.

The remedy phase of the case could be protracted, potentially followed by appeals to the US Court of Appeals, the District of Columbia Circuit, and the US Supreme Court, which could extend the legal proceedings into 2026.

So, if the partnership is actually dissolved, Apple may explore several alternatives, such as offering customers options like Microsoft Bing or developing a new search product powered by OpenAI.

I won't be surprised if Apple heads towards some sort of AI-driven search services. The company recently announced plans to integrate OpenAI's ChatGPT chatbot into its devices.

However, my gut feeling is that Google and Apple won't split for many years to come. I think Google is too heavily invested in the everyday life of the everyday Joe and Jane to simply cut ties with the iPhone, the almighty US smartphone. You know, those advertisement profits have to be made!

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