Lawsuit accuses Google of paying Apple to stay out of search engine industry



According to a press release, a class action lawsuit has been filed in California against Google, Apple and their CEOs for allegedly violating antitrust rules. According to the statement, the case is for Google and Apple to be divided into different and independent companies, in the same way that Standard Oil has been divided into Exxon, Mobile, Conoco, Amoco, Sohio, Chevron and others.

Courtesy of macrumors.com

According to the press release, the action alleges that Google and Apple have agreed that Apple will stay out of internet search activity against Google. He also claims that Google shares its search profits with Apple and gives Apple preferential treatment for all Apple devices; that Google is making multi-billion dollar annual payments to Apple so as not to compete in search; that Google is removing small competitors to keep them out of the search industry; and that Google is acquiring competing companies. According to the press release, the allegations also involve higher advertising costs than one would find in a competitive system.

According to press release, lawyers call for a halt in alleged billion-dollar payments from Google to Apple and ask court to ban non-compete agreements between the two companies, as well as the sharing agreement Google benefits and preferential treatment on Apple devices. “These powerful companies have abused their size by blocking and illegally monopolizing major markets which, in an otherwise free enterprise system, would have created jobs, lowered prices, increased production, added new competitors, encouraged innovation. and improved the quality of digital services. age, ”said plaintiffs lawyer Joseph M. Alioto of Alioto Law.

According to the New York Times, Apple gets around $ 8 billion to $ 12 billion annually in exchange for making Google the default search engine on its iPhones in 2020. Google’s paying Apple to keep the status quo, analyst says. by 2021 may have reached $ 15 billion.

The companies could not be reached for comment right away. Apple and Google have already disputed any accusation of violating antitrust laws.

While the payments are intended for Google as the default search engine, Apple and Google would likely claim that users can choose from a variety of search engines on Safari, including Microsoft’s Bing, Verizon’s Yahoo, and independent search engines DuckDuckGo. and Ecosia.

Apple would almost certainly point out that it is already in the search engine business, with Applebot, an active web crawler. Although previous reports interpreted Applebot’s increase in business as a “redoubled effort” to develop its own search technology if its deal with Google became incompatible with antitrust laws, previous reports interpreted the Applebot’s increased activity as a “redoubled effort” to develop its own search technology if its deal with Google becomes incompatible with antitrust laws.


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