In the ongoing billion-dollar legal standoff between Google and the U.S. Department of Justice concerning an alleged online search monopoly, Apple Inc.’s AAPL Senior Vice President of Services, Eddy Cue, is preparing to testify. The case revolves around a $19 billion search deal between the tech giants.
What Happened: The trial will examine a deal in which Alphabet Inc.’s GOOG GOOGL Google compensates Apple billions of dollars to secure its position as the default search engine on iPhone’s browser and other platforms.
According to Bernstein estimates, the payment from Google to Apple is projected to hit $19 billion this year.
Cue, the architect of this agreement on behalf of Apple, is expected to argue that Google’s search engine was selected as the default for iPhones due to its superior quality, reported CNBC. He will also maintain that Apple has no plans to develop a competing search engine, considering Google’s robust presence in the market.
Cue will also disclose that Apple has entered into revenue-sharing agreements with other search engines, including Yahoo, Microsoft Bing, DuckDuckGo, and Ecosia. This disclosure supports Apple’s stance that users retain the freedom to select their default search engines.
This trial might shed light on one of the most confidential deals in the tech industry that has been kept under wraps for over a decade. The case, which is anticipated to run for 10 weeks, is considered the biggest tech monopoly trial since the Department of Justice’s lawsuit against Microsoft more than 20 years ago.
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