UAE consumers get their hands on the world's thinnest and lightest AI foldable smartphone — the HONOR Magic V3, and the new HONOR MagicPad 2 on the very same day as its global debut
Apple's lucrative deal with Google could be under threat after a US judge ruled that the Alphabet-owned search giant was operating an illegal monopoly.
A potential remedy for Google to avoid antitrust actions could involve terminating the agreement, which makes its search engine a default on Apple devices, Wall Street analysts said on Tuesday.
Google pays Apple $20 billion annually, or about 36 per cent of what it earns from search advertising made through the Safari browser, for the privilege, according to Morgan Stanley analysts.
If the deal is undone, the iPhone maker could take a 4-6 per cent hit to its profit, the analysts estimated.
The pact runs until at least September 2026 and Apple has the right to unilaterally extend it for another two years, according to media reports in May that cited a document filed by the Department of Justice in the antitrust case.
"The most likely outcome now is the judge rules Google must no longer pay for default placement or that companies like Apple must proactively prompt users to select their search engine rather than setting a default and allowing consumers to make changes in settings if they wish," Evercore ISI analysts said.
Apple's shares were trading flat on Tuesday, underperforming a recovery in the broader market after Monday's global selloff. Alphabet was little changed, after falling 4.5 per cent in the previous session.
"The message here is that if you've got a dominant market position with a product, you'd better avoid the use of exclusive agreements and make sure any agreement you make gives the buyer free choice to substitute away," said Herbert Hovenkamp, a professor of law at the University of Pennsylvania. — Reuters
UAE consumers get their hands on the world's thinnest and lightest AI foldable smartphone — the HONOR Magic V3, and the new HONOR MagicPad 2 on the very same day as its global debut
How Digital Twin Technology is driving economic growth and will make the UAE a financial powerhouse
The iPhone 16 series is shaping up to be a game-changer, promising a range of new upgrades for users
Major gold retailers see good sales during the upcoming festive season on rising consumer confidence and renewed love for fine jewellery
With the rise of digital financing and the shift away from traditional credit cards, BNPL presents a compelling alternative that aligns with the needs and preferences of modern consumers
Explore how Japan's visionary avatars bridge the gap between humans and robots, as Professor Hiroshi Ishiguro defines a future where technology will enhance human experience
Satish Sanpal, Chairman of ANAX Holding, is a strong advocate for philanthropic causes, sustainable entrepreneurship, and the development of future leaders
Mastercard's transformative technology is enabling businesses to thrive in a digital-first world