*
Google's big loss in monopoly case could have silver
lining for
Apple ( AAPL )
*
US judge rules Google not required to accommodate rivals,
aiding
Apple's ( AAPL ) defense
*
Apple ( AAPL ) argues limiting third-party access to its tech is
not
anti-competitive behavior
By Jody Godoy
Aug 6 (Reuters) - Apple ( AAPL ) could be the winner
after Alphabet's Google lost its fight with the U.S.
antitrust enforcers earlier this week, with a ruling that
supports the iPhone maker's defense in its own antitrust court
battle with U.S. prosecutors, legal experts said.
A federal judge mostly sided with state and federal antitrust
enforcers in the blockbuster case on Monday that ruled Google's
search business was an illegal monopoly, but threw out a claim
by several U.S. states that one of Google's ad tools was
designed to give the company an advantage over Microsoft's ( MSFT )
Bing.
That piece could help Apple's ( AAPL ) defense in its own anti-monopoly
case, experts said.
The ruling underscored Supreme Court precedent that
companies almost never have a "duty to deal" with their rivals,
said Herbert Hovenkamp, who teaches antitrust at the University
of Pennsylvania Carey Law School.
"Any case, including Apple ( AAPL ), in which a duty to deal is a
major portion, is going to get a close look," he said.
The states had claimed Google thwarted competition by
failing to offer key features for rivals' ads through Search Ads
360, a tool for managing marketing campaigns across multiple
search engines.
U.S. District Judge Amit Mehta agreed with Google that it
was not required to spur competition by accommodating its
rival.
"Their claim requires grappling with a host of questions
that the court is ill-equipped to handle," the judge said.
That part of the ruling is good for defendants, said William
Kovacic, a professor at George Washington University Law School
and former commissioner of the U.S. Federal Trade Commission.
"It also is a reminder that the case is hardly finished," he
said, adding that the case and appeals could take years.
To be sure, Apple ( AAPL ) could ultimately lose billions of dollars
because of the Google case if the judge bans the search
juggernaut from paying the iPhone maker and others to be the
default search engine on their devices.
Mehta noted that Google had paid $26.3 billion in 2021 alone
to ensure that its search engine is the default on smartphones
and browsers, and to keep its dominant market share.
But the Google ruling could give Apple ( AAPL ) a boost in its case
where the Justice Department says it hampered the development of
third-party apps and devices.
The company last week asked for the case to be dismissed,
arguing that putting reasonable limitations on third-party
developers' access to its technology did not amount to
anti-competitive behavior, and that forcing it to share
technology with competitors would chill innovation.
The judge in Apple's ( AAPL ) case need not follow Mehta's ruling,
though Apple ( AAPL ) may try to use it to persuade him.
The Justice Department will have to show Apple's ( AAPL )
interactions with developers were more like Google's payments to
device makers, Hovenkamp said.
"In order to win, the government is going to have to point
to some kind of agreement, because then the standard becomes
more aggressive," he said.