Tech giant Apple’s (NASDAQ: AAPL) SVP of services, Eddy Cue, is set to testify in a federal court case where the U.S. Department of Justice (DOJ) has accused Google (GOOGL) of monopolizing online search through licensing agreements, according to a CNBC report.
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The spotlight is on a deal in which Google pays Apple billions to be the default search engine on iPhones, potentially reaching $19 billion this year, according research from Bernstein. Cue is likely to defend the choice, stating that Google was chosen for its superior product. The report stated that Cue is expected to say that Apple does not see the need to create a new search engine since Google already exists.
He is also likely to reveal that Apple has revenue-sharing agreements with competing search engines like Yahoo, Bing, DuckDuckGo, and Ecosia, and users can change their default search engines.
The DOJ has accused Google of anti-monopoly violations through exclusive deals with mobile phone makers for the Android operating system and browser firms for default placement, alleging these practices hinder competition for other search engines.
DOJ’s lawyer, Kenneth Dintzer, told the court in his opening statements, “This case is about the future of the internet and whether Google’s search engine will ever face meaningful competition.” Dintzer has also alleged that Google has cornered more than 89% of the market for general search.
What is a Good Price to Buy AAPL Stock?
Overall, analysts are cautiously optimistic about AAPL stock with a Moderate Buy consensus rating based on 21 Buys and eight Holds. Analysts have a consensus price target of $207.69 on the stock, implying an upside potential of 17.9% at current levels.
