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There could be a rift between Apple and Google's relationship and the 22-year-old partnership could end. There was a deal between American tech companies in 2002, which is now in danger. The main reason for this is said to be a decision of the US Department of Justice. An expensive deal was signed between these two giant tech companies 22 years ago, for which Google used to charge Apple $24 billion every year. After the decision of the US court, this deal is under threat, due to which Apple may have to suffer huge losses every year.
22 year old deal in danger
In 2002, Google entered into a partnership with Apple to provide Google Search by default on the iPhone. This search deal is likely to be put on hold after the US court's decision. Apple earned huge earnings every year due to this deal, which accounted for 6.3 percent of its total earnings. Due to the breakdown of this deal, Apple's shares are also expected to fall by 11 percent.
The US court has ruled against this search deal of Apple and Google and has described it as eliminating competition. The court has reprimanded the big tech companies and termed this deal as crushing innovation. However, Google has said in its clarification that this deal has been done due to the choice of the user. After the breakdown of the partnership between Apple and Google, Apple may have to create its own powerful search engine. Apart from this, emphasis can also be given on AI integration. However, Microsoft may benefit from the deal breaking. The company has Bing search engine like Google.
allegations made earlier also
This is not the first time that Google has been accused of monopoly or eliminating competition. Even before this, such allegations have been made against Google many times. At present, the American tech giant has an ecosystem, which includes many platforms like Android operating system, Google Search, YouTube. Google earns well because it is the default search engine. Google has also been accused of changing the policy for its own benefit.
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