Google’s anti -monopoly ruling wipes the way to pay Gemini from Apple

Eddie braid It is worth an increase.

As the CEO, he supervises the Apple Services Department, he has been very motivated to protect tens of billions of dollars annually that Google pays to be the SAFARI virtual search engine. “I lost a lot of sleep thinking about it,” he He said from the position of the witness During the Google monopoly experience earlier this year.

Fortunately for Cue, it seems that his testimony in court had a great impact on Judge Amit Mihta, who This week’s ruling Google’s virtual payments for Apple and others can last and others. You can see Cue arguments in the fun trial in the MAMA ruling: Apple SVP said it would be “madness” to punish the iPhone by restricting Google’s ability to pay for the default, and that the rise of artificial intelligence companies was restoring the search market anyway. Try to reduce the importance of Apple and Google, braid Say Google searches in Safari were first declining, which temporarily caused the Google share price.

These are the exact arguments that Mihata has ultimately presented in his rule. He admitted that virtual payments continue to “form the market for public research services in favor of Google”, but its ban will have “paralyzing” effects in the direction of the estuary on the beneficiaries of these payments. It was one of the specific impacts he had cited “a fewer products and the innovation of the products less than Apple”, and it is one of the richest companies in the world. (It is estimated that Google’s payments to Apple make up about 15 % of their annual profits.)

Mihata pointed out the emergence of obstetric intelligence companies such as Openai and Perplexity as a sign of recent competition in the search market. “The money that flows into this space, the extent of its arrival, amazing,” wrote. “These new facts are granted to the court that Google will not outperform the competitors for distribution if superior products appear.”

As Mihata knows very well, the reality of Google and Apple’s financial relationship is more complicated. Google has historically paid a percentage of advertising revenues that you earn via Safari. This corresponds to the incentives between two stronger companies on the ground, both of whom participated in the upper direction of this arrangement for the best part of two decades.

It is likely that it is not a coincidence, immediately after the issuance of the Mihita rule, The news broke out Apple is now collaborating with Google to get Gemini Power the Ai Search Engine that develops Siri. Apple’s executive officials are discussing Gemini Integration in iOS for more than a year, but they prepared for the causes of clear optics. The United States government has just granted them permission to move forward.

“This result is a home operation for the current situation, and the current situation was very favorable for both Google and Apple,” wrote the stock research company in the field of technology and media outlets in a note for its customers this week. “We do not suggest that the future of research or devices is now free of competitive threat, but this decision allows to move forward to reveal their conditions instead of the devastating and destructive judgment.”

The search deal in Apple and Google should have been retracted, and it may still be so if Apple ultimately turned into a monopoly anti -monopoly lighting. I have spoken to many Google search competitors over the years who have pointed to the deal as a major factor in suffocating competition. You can say that it had no greater effect on the silicon valley over the long time arc, in fact. The most famous aspect is that the two companies that already control how most people reach the Internet to become richer and more powerful.

The relationship that is allowed to continue now determines the stage to expand Apple and Google to expand its common dominance in the era of artificial intelligence. Apple is delayed on artificial intelligence, but it is still a strong source of distribution in Gemini via iPhone, iPads and MACS. With Google’s search payments continues to intervene, why do Apple need to get a start -up company like Mistral or Perplexity to play cake? He has already got money to work with one of the world’s leading artificial intelligence companies, and now has Blache to depict deeper relationships.

This week’s ruling also puts an Openai distribution deal with Apple for Chatgpt in a difficult place. I am sure that Apple loves to be a choice, but it will not endanger the Google relationship with the money from the continued search. Openai does not have ads yet to give Apple a competitive reduction as well. Despite what Mehta thinks, it is difficult to imagine that any other company is able to bypass Google virtual payments with a superior product (sorry, microsoft). All of this leaves Google and Apple where they were all the time: they are a monopoly of reality nourishing each other at the expense of everyone.

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