The future for Apple (NASDAQ: AAPL) just got a lot less murky thanks to the United States court system. In the monopoly case against Google Search, a judge ruled last year that the business was indeed violating anticompetitive laws in the United States. Since then, there has been deliberation on what the remedies would be to keep fair business practices.
Even though the case was not against Apple, the lawsuit posed a major threat to its cash cow licensing deal for Google Search, which the case mentioned as monopolistic behavior that could be deemed illegal. In what some saw as a surprise ruling, the judge decided on Sept. 2 that it was permissible for Apple to receive these payments from Google Search as long as they are not exclusive deals.
At more than $20 billion in licensing fees a year, this is a huge profit driver for Apple, which is why the stock shot up 4% on the announcement. Here’s what the ruling means for Apple and the stock going forward into the age of artificial intelligence (AI).