Google’s Billion-Dollar Search Engine Deal With Apple Is Under Fire in California Court

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Google Default Search Engine Class Action Lawsuit Overview:

• Who: A California crane operating school has filed a class action lawsuit against Google and Apple.
• Why: The plaintiff alleges that the pair have a multibillion dollar deal that ensures Google is the default search engine in Safari on all Apple devices and that this is anti-competitive behavior.
• Where: The class action lawsuit was filed in a California federal court.

Google and Apple have a multibillion deal that ensures Google remains the default search engine in Safari on all Apple devices, illegally blocking out the competition, a new class action lawsuit alleges. 

The class action complaint was filed against the two tech behemoths and its CEOs Dec. 27, 2021, in a California federal court, alleging violations of antitrust laws. 

According to the plaintiff, California Crane School, Inc., Apple and Google have a somewhat-secret deal that has been in place since the early days of the iPhone that also prevents Apple from launching its own search tool.

According to reports last year, Google’s most recent payment to Apple to ensure it remains the default search provider on iPhone, iPad and Mac was around $15 billion. 

The lawsuit alleges Google and Apple agreed that Apple would not compete in the internet search business against Google.  

It says the pair agreed that Google would share its search profits with Apple, and, in return, Apple would give preferential treatment to Google for all Apple devices.

It also alleges that Google and Apple held “regular secret meetings” to arrange annual multi-billion-dollar payments by Google to Apple not to compete in the search business.

Deal Allegedly Resulted In Suppression Of Competition, Increase In Advertising Rates

The deal has allegedly resulted in suppression of the competition of smaller competitors and has blocked competitors from the search market, while ramping up advertising rates higher than rates would be in a competitive system, Alioto Law Firm attorney Joseph M. Alioto said in a press release.

“These powerful companies abused their size by unlawfully foreclosing and monopolizing major markets which in an otherwise free enterprise system would have created jobs, lowered prices, increased production, added new competitors, encouraged innovations, and increased the quality of services in the digital age,” Alioto said.

The lawsuit is seeking disgorgement of the alleged billion-dollar payments by Google to Apple and an injunction prohibiting the non-compete agreement between Google and Apple. 

The complaint also calls for the breakup of Google and Apple into separate and independent companies.

Meanwhile, last month, the Ninth Circuit upheld a $13 million settlement agreement to resolve claims Google secretly and illegally collected the Wi-Fi data of an estimated 60 million people while conducting its Street View program. 

What do you think of the alleged non-compete agreement  between Apple and Google? Let us know in the comments! 

Attorneys for the plaintiffs are Joseph M. Alioto and Tatiana V. Wallace of Alioto Law Firm, Lawrence G. Papale of Law Offices of Lawrence G. Papale, Robert J. Bonsignore of Bonsignore Trial Lawyers PLLC, Christopher A. Nedeau of Nedeau Law PC, Josephine Alioto of The Veen Firm, Jeffery K. Perkins of Law Office of Jeffery K. Perkins, Theresa Moore of Law Offices of Theresa D. Moore and Lingel H. Winters of Law Offices of Lingel H. Winters. 

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