The Department of Justice and multiple states have filed a cross-appeal challenging last year's antitrust ruling that allowed Google to continue paying Apple for default search engine status, potentially reopening the future of their lucrative partnership.
The Department of Justice and a coalition of states have filed a cross-appeal challenging last year's antitrust ruling that allowed Google to continue paying Apple for default search engine status, potentially reopening the future of their lucrative partnership.
The Background: Google's Search Monopoly Ruling
In August 2024, Judge Amit Mehta ruled that Google had illegally maintained its monopoly in the U.S. online search market through exclusionary agreements with companies like Apple. The judge found that these agreements created "steeper anticompetitive effects" that helped Google maintain its dominant position.
The case then entered a remedies phase that lasted nearly a year, during which witnesses from both sides, including Apple's own executives, testified about potential solutions. Everything from forcing Google to spin off Chrome to barring exclusive agreements was considered.
During one hearing, Apple SVP of Services Eddy Cue famously suggested that AI would make search and even the iPhone obsolete, potentially rendering their current exclusive deal irrelevant. This testimony became a notable moment in the proceedings.
The September 2024 Ruling: What Google Can and Cannot Do
When Judge Mehta issued his opinion in September 2024, it was overwhelmingly favorable to Google. The ruling allowed Google to continue paying Apple to be the default search engine on Safari, rejecting a blanket "payment ban" that would have harmed partners and consumers.
Specifically, the ruling permitted:
- Google to keep paying Apple for default search engine status (though not exclusive status)
- Google to pay browser developers for default status if browsers can promote other search engines
- Browsers to set different defaults by OS version or private mode
- Annual changes to default search engine settings
- Apple to avoid adding new choice screens in Safari or iOS
- Apple to promote or integrate non-Google AI products and chatbots
However, the ruling did impose some restrictions:
- No exclusivity for generative AI products or features
- No exclusivity-adjacent incentives like higher revenue-share tiers
- A 12-month limit on default status for any Google service
The court's final judgment came in December 2024, which Google immediately appealed to the D.C. Circuit Court of Appeals.
The New Cross-Appeal: DOJ and States Challenge the Decision
As revealed in court documents filed today, the Department of Justice and multiple states are formally appealing the decision to the D.C. Circuit Court of Appeals. The notice of cross-appeal was filed by:
- United States of America
- State of Arkansas
- State of California
- State of Florida
- State of Georgia
- State of Indiana
- Commonwealth of Kentucky
- State of Louisiana
- State of Michigan
- State of Missouri
- State of Montana
- State of South Carolina
- State of Texas
- State of Wisconsin
From the court document:
NOTICE OF CROSS-APPEAL Notice is hereby given that the United States of America, the State of Arkansas, the State of California, the State of Florida, the State of Georgia, the State of Indiana, the Commonwealth of Kentucky, the State of Louisiana, the State of Michigan, the State of Missouri, the State of Montana, the State of South Carolina, the State of Texas, and the State of Wisconsin, plaintiffs in the above-named case, hereby cross-appeal to the United States Court of Appeals for the District of Columbia Circuit from the final judgment of this Court entered on December 5, 2025, and all orders in this action merged into that final judgment.
It's not yet clear which specific parts of the ruling the DOJ and states will challenge, but they're likely to try to overturn as much of Judge Mehta's decision as possible, including parts of Google's deal with Apple that were left intact.
What This Means for Apple and Google
Google has not yet commented on the cross-appeal, and Apple is likely to remain silent on the case until or if the terms of its deal come back into play. The situation is unlikely to change any time soon, with the appeals court not expected to weigh in until later this year or beyond.
The original ruling had already established a framework that allowed the partnership to continue with some modifications. The cross-appeal could potentially reopen negotiations about the terms of the deal, though any changes would likely take months or years to implement through the appeals process.
This development adds another layer of uncertainty to one of the tech industry's most significant business relationships. The Apple-Google search deal, reportedly worth billions of dollars annually, has been a cornerstone of both companies' strategies for years.
The appeal also highlights the ongoing tension between maintaining competitive markets and allowing companies to form strategic partnerships. While the original ruling sought to balance these concerns by allowing payments while restricting exclusivity, the DOJ and states appear to believe stronger measures are necessary to address Google's market dominance.
As this case moves through the appeals process, it will be closely watched by the tech industry, regulators, and competitors alike. The outcome could have significant implications not just for Apple and Google, but for the broader landscape of online search and digital advertising.
For now, the status quo remains in place, with Google continuing to pay Apple for default search status while the legal process unfolds. Consumers and developers alike will be watching to see whether this long-running partnership faces meaningful changes in the years ahead.
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