Introduction:
In 2017, Google and Apple chief executives Sundar Pichai and Tim Cook were captured having dinner at a Vietnamese restaurant. This created chaos among the tech world when two tech leaders were seen drinking red wine together. At that time, the two companies were in the midst of tense negotiations to revamp one of the most profitable deals in business history. This deal was worth billions of dollars that were invested by both parties.
Why is this deal in jeopardy?
Last Tuesday, the US Department of Justice filed lawsuits against Google. This is considered the largest US antitrust case in the previous two decades. Prosecutors say the company has used illegal tactics to minimize competition in web searches over the years.
Therefore, the partnership between Google and Apple is in trouble.
Apple and Google are referred to as two friends, although Apple’s chief executive has said that Internet advertising, which is Google’s bread and butter, is dedicated to the “surveillance” of consumers. However, Apple co-founder Steve Jobs once promised a “thermonuclear war” against his Silicon Valley neighbor when he learned that Google was working on a rival to the iPhone.
Both companies have the same parent company, Alphabet inc. The parent company usually deals in ways that provide benefits to both Apple and Google.
According to the Department of Justice, nearly half of Google’s traffic comes from Apple products. However, if this agreement is broken, Google will suffer a huge loss in its revenue.
A former Google executive called this situation terrifying for the company, as losing Apple’s traffic will directly affect Google.
This separation will also affect Apple, as the company will lose its easy money deal, but it will certainly be worse for Google. This agreement is not limited to a few products but extends to all searches performed on Apple devices.
Conclusion:
We are waiting for the progress of these cases so that we can see if this agreement will be broken or if both partners will reach another agreement for mutual benefits.
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