/Apple%20products%20on%20desk%20by%20Ake%20Ngiamsanguan%20via%20iStock.jpg)
The U.S. Department of Justice (DOJ) has taken aim at Google, Alphabet’s (GOOG) (GOOGL) crown jewel, accusing it of using illegal practices to dominate the search market. The DOJ’s case centers on Google’s exclusive deals with device makers like the Cupertino-based tech giant Apple Inc. (AAPL) to ensure its status as the default search engine on smartphones and browsers. With the DOJ pushing for significant remedies, including potentially breaking up Alphabet, the future of its search dominance is under intense scrutiny.
Notably, court documents show that Google paid Apple up to $20 billion annually for search exclusivity, with Alphabet paying 36% of its Safari-originated search revenue. This accounts for only 6% of Apple's revenue, but nearly 20% of its operating profits, according to Jefferies analyst Edison Lee - who warns that Apple could lose a significant portion of this high-margin revenue if the deal is impacted by a potential Google breakup.
