FOLLOW US

Business October 27, 2020 3 mins read

Google-Apple Alliance equals big profits, Big Tech prepares to battle DOJ

Business ı By Jackie Allen

0 Comments

Apple-Google-Privacy-Battle

 The filing of a landmark antitrust lawsuit against Google by the Department of Justice (DOJ) last week represents the "first-strike" at the Google-Apple alliance. It also signaled that US lawmakers' concerns were intensifying as the Nov. 3 presidential election approaches. 

There has been an ongoing “tech-lash” and intense scrutiny on Silicon Valley. And the big tech platforms are fighting back trying to fend off regulators and legislation with a sustained lobbying campaign and a unique ability to control the news and influence thinking around the world.

The suit claims that Google is “unlawfully maintaining monopolies through anticompetitive and exclusionary practices in the search and search advertising markets” and aims to stop Google “to remedy the competitive harms.” 

With the Google-Apple alliance, every web search on an iPhone, or from other devices, default straight to Google. Although a user has the option to change to an alternative search engine like Microsoft Bing most don’t bother.

It's one of a number of ways that the giants of tech reinforce each other's core businesses, even as they compete in other areas. Along with the antitrust concerns, the Google-Apple deal allows Apple to claim it is preserving user privacy while still indirectly making money from Google's customer data harvesting. 

This long-standing partnership is one of the most lucrative business agreements in history. Google pays Apple somewhere in the neighborhood of $10 billion to make its search engine the default on Apple’s iPhone and other Apple devices. This is Google's single largest yearly outlay and the agreement also accounts for about 20% of Apple’s annual profits.

It’s easy to view these companies as monopolies. It is estimated that the big 5 mega-tech companies are now worth more than $7 trillion. The earnings reports due from Apple, Amazon, Facebook, Twitter, and Google-parent Alphabet are anticipated to show that Big Tech unlike other industries is prospering during the pandemic.

Apple and Google respond

Apple CEO Tim Cook defended the Google deal in a 2018 interview on "Axios on HBO." He claims that  "One, I think their search engine is the best. ... But, two, look at what we've done with the controls we've built in. We have private web browsing. We have intelligent tracker prevention. ... It's not a perfect thing. I'd be the very first person to say that. But it goes a long way to helping."

There are many ways that the giants of tech reinforce each other's core businesses, even though they compete in other areas. When the suit was filed, Apple defended the practice with a “Public Policy” blog.

It’s common for technology companies to pay to have their software pre-installed on new phones or PCs. However, such deals have also come under antitrust scrutiny when used to reinforce a dominant market position.

Apple is also facing ongoing lawsuits from within the industry for its business practices. The Coalition for App Fairness was formed as an independent nonprofit organization to fight for fairness and promote competition across the app ecosystem.

Google SVP of Global Affairs Kent Walker called the DOJ antitrust lawsuit as "deeply flawed" and based on "dubious arguments."  He said, "People use Google because they choose to, not because they're forced to, or because they can't find alternatives."

----------------------------------------

Have a story you want USA Herald to cover? Submit a tip here and if we think it's newsworthy, we'll follow up on it.

Want to contribute a story? We also accept article submissions – check out our writer's guidelines here.

Previous Article

Pay Off Your Student Loans With These Easy Steps

Read More
3364 Posts

Jackie Allen

Jackie is a freelance journalist and technology geek. She worked as a telecom project director for AT&T and BellSouth. Before joining the USA Herald she has written books, articles, blogs and whitepapers. Her clients include Samsung and other technology companies.

Discussion

No comments yet. Be the first to join the discussion!

Don’t Miss It
America October 02, 2026
Kaiser Permanente Layoffs Eliminate 147 Jobs Across California
By – Rachel Moore
America October 02, 2026
Nexfibre’s $2.7B Deal Faces U.K. Competition Roadblock
By – Tyler Brooks
America October 2, 2026
Operation Epic Fury: Trump Warns Iran…

Operation Epic Fury remains central to the Trump administration’s account…

By – Jackie Allen
America October 2, 2026
Capitol Police Plaque Lawsuit Dismissal Ends…

Sometimes a legal fight isn’t about the money or the…

By – Tyler Brooks
America October 2, 2026
G7’s Release of 100M Barrels of…

What Truckers and Consumers Need to Know The G7’s 100-million-barrel…

By – Samuel Lopez
America October 2, 2026
Halle Berry Hit with Temporary Restraining…

What the Court Order Signals A Los Angeles judge granted…

By – Samuel Lopez
America October 2, 2026
Killed by in-laws: New York Times…

Jonathan McKinsey, 40, was killed by his elderly in-laws. They…

By – Jackie Allen
America October 1, 2026
Government Spending: Trump Administration Moves to…

 The Trump administration is moving to cancel nearly $1 billion…

By – Jackie Allen
America October 1, 2026
Government Spending: Trump Administration Moves to…

 The Trump administration is moving to cancel nearly $1 billion…

By – Jackie Allen
America October 1, 2026
Lyft $272.5M Settlement Marks California’s Largest…

Some settlements fade quietly into legal history. This one is…

By – Tyler Brooks
America October 1, 2026
Google Launches Project Suncatcher, Betting on…

Sometimes the boldest ideas start small — in this case,…

By – Tyler Brooks
America October 1, 2026
TJ Maxx Closing Three More Stores…

Empty storefronts have become almost a recurring chapter in retail’s…

By – Rachel Moore
America October 1, 2026
$500 Obamacare Refund Checks Land in…

Not every government payment lands evenly across the map —…

By – Rachel Moore
America October 1, 2026
Zurich Beazley Takeover Officially Closes, Creating…

Months of regulatory hurdles, court hearings and shareholder maneuvering have…

By – Rachel Moore
America October 1, 2026
JPMorgan Executive Renews Countersuit After Ex-Banker’s…

The “sex slave” allegations involving JPMorgan Chase executive Lorna Hajdini…

By – Jackie Allen
America October 1, 2026
Diesel Crisis: Louisiana Relief Meets New…

Louisiana’s diesel crisis has entered October with emergency relief still…

By – Michallie Harrison
America September 30, 2026
Chad Lowe’s Daughter Fiona Dies at…

Actor Chad Lowe and his wife, producer Kim Painter, are mourning the…

By – Jackie Allen
America September 29, 2026
Clone Saga could replace Spider-Noir as…

The Clone Saga could be coming to television as Sony…

By – Jackie Allen
America September 29, 2026
Unabomber: Russell Crowe true-crime thriller surges…

“Unabomber,” Netflix’s new true-crime drama starring Russell Crowe and Jacob…

By – Jackie Allen
America September 29, 2026
Cornell University case draws renewed scrutiny…

ITHACA, N.Y. — A key piece of evidence in the…

By – Jackie Allen
America September 30, 2026
Arnold Schwarzenegger Heads to Jury Trial…

What the Jury Will Decide Schwarzenegger has conceded negligence in…

By – Samuel Lopez
America September 30, 2026
Oklahoma Judge Strips Secrecy From 11…

Inside the Hursh Courtroom Showdown A judge removed the confidential…

By – Samuel Lopez
America September 30, 2026
AI Is Creating New Losses Faster…

What Policyholders Need to Know Deepfakes and misinformation dominate reported…

By – Samuel Lopez
America September 30, 2026
California ‘Kelvin Wave’ Phenomena Could Supercharge…

What Coastal Homeowners Need to Know A massive El Niño-linked…

By – Samuel Lopez
America September 30, 2026
Queen and David Bowie’s Copyright Dispute…

What the Copyright Record Actually Shows Queen and David Bowie…

By – Samuel Lopez
America September 30, 2026
Wladimir Klitschko Moves to Protect Daughter…

What the Court Filing Reveals Klitschko wants immediate legal authority…

By – Samuel Lopez
America September 29, 2026
Trump Launches America.gov AI Portal That…

What Americans Need to Know gov is now an AI-powered…

By – Samuel Lopez
America September 28, 2026
Pope Leo XIV Condemns France’s New…

What Readers Should Know Pope Leo XIV used his visit…

By – Samuel Lopez
America September 27, 2026
Strangers Collected $30 Million In ‘Illegal…

What You Need to Know 1. George A. Neukom Jr.’s estate…

By – Samuel Lopez
America September 26, 2026
Princess Diaries Star Heather Matarazzo Says…

WHY THIS MATTERS Heather Matarazzo just admitted something most working…

By – Samuel Lopez
America September 24, 2026
California’s $11 Billion Undocumented Immigrant Benefits…

By Samuel López | USA Herald SACRAMENTO – California is…

By – Samuel Lopez
America September 22, 2026
Hayden Panettiere’s Cause of Death Confirms…

What the Toxicology Findings Tell Us Hayden Panettiere’s death has…

By – Samuel Lopez
America September 28, 2026
JJ McCarthy Trade Sends Former First-Rounder…

Two years ago, a franchise spent a top-10 pick on…

By – Tyler Brooks
America September 26, 2026
New York Sues Polymarket Claiming Prediction…

What This Fight Is Really About New York says Polymarket…

By – Samuel Lopez
America September 24, 2026
New York Sues Polymarket Over Alleged…

What’s Riding on the Bet New York says Polymarket’s sports…

By – Samuel Lopez
America September 23, 2026
Roblox widow alleges $6 million scam,…

The Roblox widow says a former companion took $6 million…

By – Jackie Allen
America September 22, 2026
Network Traffic Challenges May be Reshaped…

Network traffic has traditionally moved in one dominant direction: from…

By – Jackie Allen
America September 21, 2026
Gilbert Goons Defendant Arrested Again for…

A Gilbert Goons defendant awaiting trial in the 2023 death…

By – Jackie Allen

No posts found.

No posts found.

Signup for the USA Herald
exclusive Newsletter