In the ever-evolving tech landscape, the dynamic between industry giants Apple Inc (NASDAQ: AAPL) and Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) Google has been a mix of fierce competition and strategic collaboration.
Over the years, their interactions have encompassed intense rivalry, epitomized by Steve Jobs' famous "thermonuclear war" threat over Google's foray into smartphones and enthusiastic cooperation.
Since 2005, Google has paid Apple substantial sums to secure its position as the default search engine on Apple's Safari web browser. A trove of internal communications has surfaced as part of the U.S. Department of Justice's antitrust case against Google, Bloomberg reports.
The trial, set to last ten weeks, primarily focuses on Google's alleged monopoly in the online search market.
If the Justice Department prevails, it may seek to separate Alphabet's search business from other products, potentially resulting in a U.S. company's most significant forced breakup since AT&T Inc's
(NYSE: T) dissolution in 1984.
Regardless of the outcome, the trial could have repercussions for Google and its business partners, including Apple, whose executives will testify.
The Justice Department and 52 state attorneys general accuse Google of maintaining its search monopoly through agreements with tech rivals, smartphone manufacturers, and wireless providers.
Among these deals, the agreement with Apple stands out. It began 18 years ago, making Google Apple's default search engine and giving it a significant share of the ad revenue generated from Safari browser searches.
While Google's market share surged to 90%, Apple reaped billions annually from this partnership.
Amazon.Com Inc (NASDAQ: AMZN) is also under inquiry of the Federal Trade Commission (FTC) over preferential treatment of its products on its platforms and third-party seller treatment.
The FTC has also investigated Amazon for potential anticompetitive conduct over its marketplace, Prime subscription service, and cloud computing.
Price Action: GOOG shares traded higher by 0.06% at $137.28 on the last check Monday.