Apple is the biggest winner in the antitrust ruling against Google

 Court stresses need for annual renewal of contracts                        

Apple is the biggest winner in the antitrust ruling against Google

The US technology market witnessed a surprising development. Apple and Google emerged victorious from the antitrust battle led by the US Department of Justice against Alphabet, Google's parent company.

Despite Google's conviction last year for monopolistic behavior, Judge Amit Mehta ruled that the company will not be forced to spin off its businesses or halt its deals with Apple, including the agreement to make Safari the default search engine. The decision simply means billions of dollars will continue to flow into Apple's coffers annually, according to a report published by CNBC.

Greater bargaining power

The ruling emphasized that Google cannot enter into exclusive deals, and that contracts with Apple must be renewed annually. This gives Apple an unprecedented negotiating advantage, especially since Google pays it approximately $20 billion annually, equivalent to 15% of its operating profits, in exchange for its virtual engine remaining on iPhones.

Wall Street breathes a sigh of relief.

Analysts described the decision as a "sweeping victory" for both sides, as it is expected to restore Apple's stock market momentum after a period of turmoil due to antitrust lawsuits. Apple also avoids tariffs on imports from India and commits to an additional $100 billion in US manufacturing investments.

Despite criticism of Apple's lagging behind in the AI ​​race, Goldman Sachs analysts believe its increased investments in data centers and server manufacturing pave the way for the introduction of AI-based features by 2026, which could encourage users to upgrade their devices and double the company's profits. 

The decision coincides with the countdown to Apple's September 9 event, where Tim Cook is expected to unveil the iPhone 17 series, including the new ultra-thin Air model, along with updates to the Apple Watch.