Apple dodged a major blow as a federal judge ruled Google can continue revenue-sharing payments for its Search, Chrome, and AI services on Apple devices. This means Google will pay Apple an estimated $20 billion yearly, boosting Apple’s stock by 2.5% to $236 a share. Google’s appeal against being labeled an illegal monopolist could still impact the situation.

The ruling allows Apple to renegotiate terms annually, potentially increasing revenue. Google can’t exclude competing apps, but Apple already offers Google’s ChatGPT via Apple Intelligence. This revenue-sharing deal accounts for around 20.8% of Apple’s Services revenue, totaling $96.2 billion in 2024. The $20 billion estimate for 2022 could rise in subsequent years.

Analysts like BofA Global Research’s Wamsi Mohan see the ruling as a positive for Apple, raising the price target from $250 to $260. Morgan Stanley’s Erik Woodring believes the decision could benefit Apple long-term, allowing for renegotiations and potential new fees from search partners. The ruling solidifies Apple’s position in its relationship with Google.

Read more at Yahoo Finance: Apple dodged a $20 billion hit, thanks to Google antitrust ruling