Apple and Google are accused of violating US antitrust laws, according to allegations in a class action lawsuit filed in the United States.
ALLEGED CONFIDENTIAL AGREEMENT BETWEEN GOOGLE AND APPLE IS IN COURT
The complaint alleges that Google and Apple agreed that Apple would stop developing its own search engine to avoid competing with Google.
It is also alleged that there is a collusion that Google will share its profits from search results with Apple, and that Apple will give Google preferential treatment on all Apple devices.
By doing so, it is argued, both companies are working together to stifle the competition from smaller competitors, effectively removing them from the search engine market. It is also claimed that due to the alleged collusion, advertising rates are higher than in a competitive system.
The complaint states that these agreements were made at regular secret meetings between Apple and Google executives.
8-12 BILLION DOLLARS ANNUAL EARNINGS ESTIMATE
In 2020, it was claimed that Apple earned an estimated $8-12 billion a year in exchange for making Google default on its devices. According to an analyst’s claim, Google’s payment to Apple in 2021 may have increased to $ 15 billion to protect this privilege. It is thought that this could make up a fifth of Apple’s annual profit.
The lawsuit seeks the reimbursement of Google’s alleged billion-dollar payment to Apple. It also seeks an injunction banning the non-compete agreement between Google and Apple, the profit-sharing agreement, the preferential treatment of Google’s Apple devices, and the alleged payment by Google to Apple.
The lawsuit also demands that the two technology giants be separated into “separate and independent companies” in order to prevent monopolies.