In a recent judgement by the U.S. Federal District Court ruling that Google had engaged in anticompetitive behavior in its search service, following a complaint by the U.S. Department of Justice, Google is preparing to appeal. However, the interesting aspect lies in those who may be affected by this ruling, which may not necessarily be Google.
Fortune observes that Judge Amit Mehta described Google’s anticompetitive behavior as it pertains to its agreements with smartphone manufacturers and platforms, in order to remain the dominant search engine. This could mean that Google may be instructed to cease such agreements. Those directly impacted may be individuals benefiting financially from Google. Of particular interest are Apple and Mozilla.
In the case of Apple, the latest disclosed figures show that in 2022, Google paid up to $20 billion to remain the default search engine on iOS, iPadOS, and macOS. Apple records this revenue in their Services business segment, with the most recent quarterly revenue totaling $24.213 billion, suggesting Google’s contribution to be around 20-25% of the Services revenue. This could potentially affect Apple to some extent, but overall, Apple has diverse revenue streams.
Mozilla, on the other hand, could face more significant repercussions. Financial reports from 2021-2022 indicate that Mozilla, a non-profit organization, generated $593 million in revenue, with $510 million coming from its agreement with Google. If Google is forced to terminate its agreement with Mozilla, this could immediately impact Mozilla’s financial standing.
Representatives from Mozilla have closely monitored the court’s decision and assessed potential impacts, preparing contingency plans. Users of Firefox may have the ability to select their preferred search engine going forward.
TLDR: A U.S. court decision found Google guilty of anticompetitive behavior, potentially affecting financial agreements with Apple and Mozilla, with implications for users as well.
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