TLDR
- Apple stock rose 3.23% in pre-market trading on September 3, 2025 following Google antitrust ruling
- Federal judge allowed Google to keep Chrome browser, preserving Apple’s $20 billion annual payment deal
- Google can continue making payments to Apple for default search placement on iPhones
- Judge ruled Google must share search data with competitors but avoided forcing Chrome sale
- Alphabet shares gained 7.2% while Apple rose 3% as investors celebrated the decision
Apple shares jumped 3.23% in pre-market trading on September 3, 2025, after a federal judge delivered a mixed antitrust ruling against Google that preserved one of Apple’s most profitable partnerships.
U.S. District Judge Amit Mehta ruled that Google can keep its Chrome browser and continue paying Apple billions of dollars annually for default search placement on iPhones. The decision came as welcome news for Apple investors who had worried about losing a major revenue stream.
Google pays Apple approximately $20 billion each year for default search positioning across Apple devices, according to Morgan Stanley analysts. This partnership represents one of Apple’s largest revenue sources from services agreements.
The judge’s ruling requires Google to share search data with competitors but stops short of forcing the tech giant to sell Chrome or end its payment agreements with device makers. Judge Mehta wrote that he approached the remedies with “humility” given rapid changes in the tech landscape.
Revenue Stream Protection
Apple’s stock reaction reflects investor relief that a key revenue source remains intact. The $20 billion annual payment from Google flows directly to Apple’s services division, which has become increasingly important for the company’s overall profitability.
Analysts had expressed concern that losing Google payments could hurt Apple’s margins and force the company to find alternative revenue sources. The ruling eliminates that immediate threat.
Alphabet shares rose 7.2% in extended trading as investors celebrated Google avoiding a forced Chrome sale. Apple’s 3% gain shows how interconnected the two tech giants have become through their search partnership.
The judge noted that artificial intelligence companies like OpenAI now pose competitive threats to Google’s search dominance. This changing landscape influenced his decision to take a lighter approach to remedies.
Market Competition Changes
Judge Mehta emphasized how AI development has shifted competitive dynamics since the antitrust case began five years ago. ChatGPT and other AI tools now challenge Google’s search monopoly in ways that didn’t exist when litigation started.
The ruling requires Google to make it easier for device makers to load competing search apps. Google had already proposed loosening exclusive agreements with partners like Samsung and Motorola.
Apple maintains flexibility to adjust its default search arrangements if competitive conditions change. The company could potentially negotiate with other search providers or develop its own search capabilities.
The decision preserves Apple’s ability to collect revenue from multiple technology partnerships while maintaining user choice on its devices. Users can still change their default search engine if they prefer alternatives to Google.
Google expressed concerns about data sharing requirements, stating in a blog post that the mandate “will impact our users and their privacy.” The company plans to review the decision closely and has previously indicated it will appeal.
Apple has not commented publicly on the ruling’s financial implications. The company typically treats revenue-sharing agreements as confidential business matters in earnings discussions.
The Justice Department is considering next steps in the case, according to Assistant Attorney General Gail Slater. Any appeal process could take years to resolve through higher courts.
Legal experts expect the case will ultimately reach the Supreme Court given its importance to the tech industry. Judge Mehta designed his remedies with potential Supreme Court review in mind.
The ruling comes as Google faces additional antitrust challenges including a separate case over its advertising technology business. That trial is scheduled for later this month.
Apple continues to benefit from the search payment arrangement while the legal process plays out through appeals. The company maintains its strategic partnership with Google pending any higher court decisions.
