Apple shares climbed more than three percent in after-hours trading on September 2, 2025, following a federal judge’s decision that lets Google keep paying to preload its search engine on iPhones. The ruling by Judge Amit Mehta in Washington came in a major antitrust case against Google, preserving a key revenue stream for Apple while imposing some limits on Google’s practices.
Details of the Antitrust Decision
Judge Mehta ruled that Google holds an illegal monopoly in online search but stopped short of banning its payments to partners like Apple. This decision follows a year-long legal battle that started with the Justice Department’s lawsuit in 2020.
The case centered on Google’s deals that make its search the default option on devices. Mehta said Google cannot enter exclusive contracts for preloading its apps, but it can still offer payments for placement. This means the current agreement with Apple, worth about twenty billion dollars a year, can continue in some form.
Google must now share search data with rivals to boost competition. The judge also barred Google from bundling its Android services with search deals. These changes aim to open the market without causing major harm to partners or users.
Analysts note that the ruling avoids the worst outcomes for both companies. Google keeps its Chrome browser and can negotiate new deals, though limited to one-year terms. This balance seeks to address monopoly concerns while protecting business ties.
How the Ruling Affects Apple
Apple relies on Google’s payments for a big chunk of its services revenue. These deals ensure Google Search is the default on Safari browsers across iPhones, iPads, and Macs.
Without this income, Apple could face a hit to its profits. Experts estimate the payments make up around fifteen percent of Apple’s yearly earnings from services. The decision gives Apple breathing room to maintain or adjust the partnership.
Apple’s leaders, including CEO Tim Cook, have highlighted the value of these arrangements for user experience. During the trial, Apple’s executive Eddy Cue testified about the benefits of default search deals.
The company now has options to explore other search partners if needed. Recent reports suggest Apple has talked with firms like OpenAI and Perplexity about AI-powered search features.
- Key benefits for Apple from the ruling:
- Preserves billions in annual revenue.
- Avoids forced changes to iPhone software setups.
- Allows time to innovate in search and AI tools.
Google’s Response and Challenges Ahead
Google welcomed parts of the ruling but raised concerns about data sharing and user privacy. In a blog post, the company said it would review the decision and appeal if necessary.
The tech giant must end exclusive pacts and cannot condition revenue shares on accepting other apps. This could weaken its grip on the search market, where it holds over ninety percent share.
Google plans to fight the monopoly finding from August 2024. Appeals could drag on for years, possibly reaching the Supreme Court. In the meantime, the company must comply with new rules starting next year.
Despite the limits, Google avoids divestitures like selling Chrome. This lets it focus on growing areas like generative AI products.
Market Reactions and Stock Movements
Investors cheered the news, sending shares of both companies higher. Apple’s stock rose about four percent in extended trading, reflecting relief over the saved revenue.
Google’s parent, Alphabet, saw an even bigger jump of over seven percent. The market views the ruling as a win that avoids harsh penalties.
| Company | Stock Change | Closing Price (Sep 2, 2025) | Market Cap Impact |
|---|---|---|---|
| Apple | +4.3% | $225.50 | +$150B gain |
| Alphabet (Google) | +7.2% | $165.80 | +$200B gain |
| Microsoft (rival) | -0.5% | $410.20 | Minor dip |
This table shows immediate after-hours shifts. Broader markets stayed stable, but tech stocks gained overall.
Traders expect volatility as details unfold. Some worry about long-term effects on search dominance, but others see opportunities for innovation.
Broader Implications for Tech Industry
The case sets a precedent for antitrust actions against big tech. It highlights how default deals can stifle competition and innovation in search.
Rivals like Microsoft could benefit from Google’s data sharing. This might lead to better search options for users and more choices on devices.
Consumers stand to gain from a more open market. The ruling pushes for fair play without disrupting popular services.
It also ties into other ongoing cases. For instance, the Justice Department has separate suits against Apple over app store practices. These battles shape the future of tech regulation.
What Happens Next
Appeals and compliance will take time. Google has until next year to adjust its deals, giving companies room to adapt.
Experts predict minimal short-term changes for users. iPhone owners will likely keep Google as default search for now.
The decision underscores the need for balanced antitrust remedies. It protects innovation while tackling monopoly power.
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