$AAPL: Antitrust Boost from Google Deal — But $490M Settlement Still Shadows Apple

Court: N.D. California

Case: 4:19-cv-02033

Apple AAPL shares rose 3% after a U.S. judge allowed Google to keep paying Apple for default search placement in Safari, a ruling that preserves billions in Services revenue. However, the company still faces the overhang of a $490M investor settlement tied to iPhone demand misstatements in China.

• Judge Mehta ruled Google may continue preloading Search on Apple devices.
• Google avoids Chrome or Android divestiture but must share data with rivals.
• AAPL gained 3% in extended trading on news of the ruling.
• Apple benefits from billions in annual Google payments reported as ad revenue.
• Long appeals process expected; final outcome could take years.

Timeline Overview

• Nov 1, 2018 – Tim Cook said China wasn’t under sales pressure.
• Jan 2, 2019 – Apple cut revenue forecast by $9B on weak China demand.
• Jan 3, 2019 – AAPL dropped 10% after the disclosure.
• Apr 16, 2019 – Investors sued Apple for misleading statements.
• 2025 – Apple settled with investors for $490M.

Allegations Include

• Hiding weak iPhone demand in China.
• Downplaying trade war impacts.
• Battery replacement discounts cutting upgrades.
• Pressure from lower-cost Chinese rivals.

Investor Update

Apple will pay $490M to resolve claims tied to Tim Cook’s statements. The deal ends litigation but leaves a cloud over disclosure practices.

You can check more information about it HERE.