Google shares plunge after Apple executive’s court testimony

[Pelican Press 0]

This is the hidden content, please

• Sign In
• or
• Sign Up

This is the hidden content, please

• Sign In
• or
• Sign Up

shares plunge after Apple executive’s court testimony

US Judge Amit Mehta will determine how

This is the hidden content, please

• Sign In
• or
• Sign Up

must address his landmark ruling last year that

This is the hidden content, please

• Sign In
• or
• Sign Up

operates an ******** monopoly in online search (NICHOLAS KAMM)

Shares in

This is the hidden content, please

• Sign In
• or
• Sign Up

parent Alphabet plunged more than eight percent on Wednesday after Apple executive Eddy Cue testified in federal court that

This is the hidden content, please

• Sign In
• or
• Sign Up

’s search traffic on Apple devices declined last month for the first time in over two decades.

Cue, Apple’s senior vice president of services, told the Washington antitrust trial that

This is the hidden content, please

• Sign In
• or
• Sign Up

was losing ground to AI alternatives like ChatGPT and Perplexity.

His revelation that this decline “has never happened in 22 years” sent shockwaves through Wall Street, wiping more than $170 billion from

This is the hidden content, please

• Sign In
• or
• Sign Up

’s market capitalization in a single trading session.

The testimony came during a pivotal trial where District Judge Amit Mehta will determine remedies for

This is the hidden content, please

• Sign In
• or
• Sign Up

’s previously ruled ******** search monopoly.

The case, ongoing since 2020, has exposed

This is the hidden content, please

• Sign In
• or
• Sign Up

’s practice of paying Apple tens of billions dollars annually to remain the default search engine on Safari browsers and Apple smartphones.

Investors were further unsettled when Cue suggested Apple might soon offer AI alternatives as default search options on its devices, heightening concerns that

This is the hidden content, please

• Sign In
• or
• Sign Up

’s advertising revenue could face serious threats from AI competitors.

With the three-week trial set to conclude Friday, government attorneys are pushing Judge Mehta to order

This is the hidden content, please

• Sign In
• or
• Sign Up

to divest its Chrome browser.

They argue that AI technologies will only strengthen

This is the hidden content, please

• Sign In
• or
• Sign Up

’s dominance by leveraging its vast data resources across products like Maps,

This is the hidden content, please

• Sign In
• or
• Sign Up

, and Chrome to stifle competition.

However, Cue’s testimony bolstered

This is the hidden content, please

• Sign In
• or
• Sign Up

’s defense that AI is already disrupting its search dominance, with chatbots now posing legitimate threats to its business model.

– ‘Losing sleep’ –

When Judge Mehta issues his ruling in August, he could end

This is the hidden content, please

• Sign In
• or
• Sign Up

’s default search agreements with Apple and others — a prospect that Cue told the court he was “losing sleep” over, with potential revenue losses impacting Apple’s product development and operating system investment.

Alternatively, Mehta might order

This is the hidden content, please

• Sign In
• or
• Sign Up

to share its search data with competitors, which CEO Sundar Pichai warned would effectively amount to a “de facto divestiture of search.”

As a counter offer,

This is the hidden content, please

• Sign In
• or
• Sign Up

proposes a more limited remedy that would allow it to continue paying for default placement of its search engine, but with an annual renegotiations and greater freedom for smartphone manufacturers to choose which

This is the hidden content, please

• Sign In
• or
• Sign Up

apps to install on their devices.

The

This is the hidden content, please

• Sign In
• or
• Sign Up

case represents just one of five major tech antitrust actions currently pursued by the US government, with Meta facing similar scrutiny in the same courthouse.

This is the hidden content, please

• Sign In
• or
• Sign Up

#

This is the hidden content, please

• Sign In
• or
• Sign Up

#shares #plunge #Apple #executives #court #testimony

This is the hidden content, please

• Sign In
• or
• Sign Up

This is the hidden content, please

• Sign In
• or
• Sign Up