Google faces high costs and demands that Apple and other industry players include default browsers.Use its search engine, in order to promote the growth of its advertising business, may be deemed by the United States and the European Union to violate market monopoly, and Apple may face a lot of revenue losses in the future.
If estimated by market analysisApple's profit from using Google's search engine as the default in its Safari browser may account for about a quarter of Apple's annual service revenue.
Therefore, if Google is deemed to have affected its market monopoly in the subsequent court ruling, it will no longer be able to continue paying Apple high fees in exchange for using the Google search engine as the default in the Safari browser. This will have a significant impact on Apple's revenue and the development of Google's advertising business.
In addition, under the implementation of the EU Digital Markets Act, both Google Play Store and Apple's App Store are facing stricter scrutiny. Apple is even required to allow users to purchase services or digital content through other payment methods. It is even required that Apple must allow users to obtain services through third-party software markets and cannot limit users to obtaining software services only through the App Store.
As the EU takes strict measures to require Apple to cooperate, Japan, South Korea, and the United States have also followed suit and asked Apple to allow users to obtain services through third-party software markets. This may also lead to changes in the App Store's previous operating model, and will also affect Apple's service revenue.
Although Apple's main revenue currently still comes from hardware including the iPhone, its service revenue has indeed continued to grow in recent years, even reaching $850 billion. This includes not only service and digital content sales, but also commissions from paid sales within apps and payment fees from Google partnerships. If the cooperation model with Google changes in the future, coupled with the App Store's revenue model facing changes, Apple's service revenue may be significantly reduced.
