While the antitrust case was officially against Google, the ruling this week prompted a massive sigh of relief 40 miles south in Cupertino. Apple emerged as one of the biggest indirect winners, as the court’s decision preserved a $20 billion annual revenue stream that is critical to its booming services division.
The government’s proposal to ban Google’s payments for default search placement on the iPhone was an existential threat to a significant and high-margin part of Apple’s business. Had the ban been approved, it would have vaporized a huge chunk of revenue overnight, creating a major headache for a company already facing global scrutiny over its App Store practices.
Judge Mehta’s reasoning—that cutting off the payments would cause “crippling” harm—was a direct validation of the importance of this partnership. It ensures that Apple’s services growth narrative, a key factor for its investors, remains strong and stable.
In exchange for this financial security, Apple will have to make some minor tweaks, like prompting users annually to consider other search engines. For Apple, this is an incredibly small price to pay to protect a $20 billion golden goose, making this verdict a quiet but massive victory for the iPhone maker.