**Department of Justice's Suit Against Apple Takes a New Turn**
In a recent development, Apple has asked a federal appellate court to halt antitrust proceedings that could result in an order ending the company's long-standing search and revenue-sharing partnership with Google. This move comes as part of an ongoing antitrust fight that began in 2020, when the Department of Justice and a coalition of states alleged that Google illegally monopolized search.
On Monday, Apple filed an "emergency motion" with the D.C. Circuit Court of Appeals, arguing that unless the matter is stayed, the company won't be able to fully advocate against the Department of Justice's proposal to terminate the multi-billion dollar partnership. Apple claims that participating as a friend-of-the-court, as allowed by U.S. District Court Judge Amit Mehta, does not substitute for intervening in the case.
"Only Apple can adequately defend its interests against plaintiffs' sweeping proposal," Apple argues, referring to the Justice Department. "And only Apple can provide information about how it would respond to plaintiffs' requested remedy -- and why it would not enter the general search market even if plaintiffs' proposal were adopted."
The federal government is proposing numerous restrictions on Google, including ending the revenue-sharing deal with Apple. This arrangement involves Google serving as the default search engine for Safari and paying Apple around thirty-six percent of search revenue for queries originating on Safari. The agreement resulted in an estimated twenty billion dollar payment from Google to Apple in 2022.
Judge Mehta is expected to hold a hearing in April over potential remedies. Apple's appeal of Mehta's decision to deny their intervention request is pending, and the company has asked the appellate court to order Mehta to stay proceedings in the case while the appeal is pending or, alternatively, to expedite the appeal.
The outcome of this case could have significant ramifications for the tech industry, particularly in how companies structure their partnerships and revenue-sharing agreements. The Department of Justice's suit against Apple is part of a broader effort to address anticompetitive practices in the tech sector.
In related news, the Department of Justice's antitrust lawsuit against Apple, filed in March 2024, accuses the company of broad anticompetitive conduct affecting everything from web browsers and messaging to apps and digital payments. Apple has sought to dismiss the lawsuit, arguing that the DOJ has failed to plausibly allege that the company has monopoly power in the smartphone market and that consumers were harmed.
The case is expected to drag on for years to come, with significant implications for the tech industry and consumers alike. As the case unfolds, it will be crucial to monitor developments and assess the potential impact on the industry and broader market.
