Apple barred from Google antitrust trial, putting $20 billion search deal on the line

Apple has suffered a blow in its efforts to salvage its lucrative search placement deal with Google. A new ruling from the DC Circuit Court of Appeals affirms that Apple cannot participate in Google's upcoming antitrust hearing, which could leave a multibillion-dollar hole in Apple's balance sheet. The judges in the case say Apple simply waited too long to get involved.

Just a few years ago, a high-stakes court case involving Apple and Google would have found the companies on opposing sides, but not today. Apple's and Google's interests are strongly aligned here, to the tune of $20 billion. Google forks over that cash every year, and it's happy to do so to secure placement as the default search provider in the Safari desktop and mobile browser.

The antitrust penalties pending against Google would make that deal impermissible. Throughout the case, the government made the value of defaults clear—most people never change them. That effectively delivers Google a captive audience on Apple devices.

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