On May 7, 2025, the share price of Alphabet Inc. tumbled 7.5%. At one point, the parent company of Google was down almost 10%. Observers immediately pointed to Google’s ongoing antitrust trial, during which a senior Apple executive revealed that search engines were becoming less popular due to the rise of AI. The antitrust case is a major story in and of itself, but this relatively simple revelation could have major implications for the future.

Could users completely abandon traditional search engines in favor of AI? Is this the beginning of Google’s death spiral? Or could the company save itself by creating its own AI solutions, such as Gemini? If nothing else, this illustrates the enormous potential of AI to upend the way we behave online. With the right approach, it could also end long-standing monopolies and finally give AI startups a chance to compete. If you need help with the legal aspects of your AI startup, consider speaking with an experienced tech lawyer.

Apple Senior Vice President Sinks Google Stocks With Lawsuit Disclosures

On May 7, multiple sources reported that Google’s stock had faltered because of comments made by Apple’s Senior Vice President of Services during an antitrust trial. In many ways, the Apple representative did not say anything new. However, the fact that this comment came from such a major player on the tech scene definitely gave it more authority.

So what exactly did Eddy Cue say? His testimony covered many topics, and many of his comments made headlines for different reasons. However, the most interesting comments involved AI. At one point during his testimony, Cue stated that he was not sure that people would be using iPhones 10 years from now – implying that the technology could be completely replaced by AI within a decade.

From Google’s perspective, however, the most damaging comments involved the potential for AI to replace all traditional search engines. Cue provided data to back up this sentiment, revealing that search volumes fell on Safari in April. This is the first time in Apple’s history that search has declined on Safari.

Cue also stated that Apple was planning to add AI solutions to its default browser, further implying that its current search engine is now obsolete. It is unclear whether this will be an Apple-exclusive AI solution or whether Apple will collaborate with Google and integrate the latter’s Gemini platform.

Understanding the Google Antitrust Case

While these comments certainly shocked markets, a clear understanding of the underlying antitrust case may provide more nuanced insights. First, it is important to realize that Cue had a clear incentive to make these kinds of comments. Google is being accused of maintaining a monopoly over search, and its lawyers are attempting to argue that the rise of AI makes these allegations false.

The logic is that with so much rising competition from AI, Google is no longer the tech giant that it used to be. It’s an effective argument, and it might even be mostly true. However, it means that one must take Cue’s comments with a grain of salt.

Apple also has a financial incentive to highlight the threat from AI. Currently, Alphabet pays Apple $20 billion a year to ensure that its Google search engine remains the default option for all iPhones. Some observers believe that Cue’s comments represent a desperate fight to keep Apple’s $20 billion paycheck. As long as Apple and Google present themselves as underdogs in the fight against AI, they can avoid antitrust consequences. The money will keep flowing.

A federal judge has already decided that Google has established a monopoly on search, and that ruling came last year. Now, the trial is focusing on how to address this monopoly. Representatives from other AI companies have testified that Google is often too strong to compete with on a level playing field. The U.S. government has suggested that Google should sell its Chrome browser. Google may also have no choice but to end its tech agreement with Apple.

The AI Industry is Extremely Competitive

Despite ongoing discussions on the monopoly of web search, there is no denying that the AI industry remains extremely competitive. The emergence of DeepSeek showed the world how new players can arrive on the scene at any moment, potentially upending the status quo in the process.

Another major player is ChatGPT, and many users have already completely abandoned Google’s search engine in favor of this option. Some users have downloaded dozens of AI solutions, and they are experimenting with each one to find their favorite. Within a year or two, an entirely new player could arrive on the scene and change everything once again.

So while it is true that Google and Apple might be overplaying the threat from AI competitors to avoid antitrust consequences, the future of digital search is still quite uncertain. The competition is real, and this is excellent news for new AI startups who want to take on the biggest tech names on a level playing field.

If the past has taught us anything about tech companies, it is that no one is safe. Even the biggest names can fall, and even the most incredible tech stories must eventually come to an end. Eddy Cue underlined his point during his testimony, stating:

“When I got to Silicon Valley, all of the best companies, or the most successful companies, either don’t exist today or are significantly smaller and less impactful.”

Speak With an Experienced Tech Lawyer About Your AI Startup

With so much uncertainty about the future of web search, it makes sense to carefully plan new AI startups with one eye on a constantly changing landscape. Remember, Google’s stock recently faltered because of testimony in a lawsuit, highlighting the role of our courts in shaping the future of AI in the United States. Proper legal compliance is just one way in which a technology lawyer can assist AI entrepreneurs in the modern era. These legal professionals can also provide consulting services, helping startups plan for all kinds of challenges that may arise in an uncertain future. To learn more about how a tech lawyer can help, contact John P. O’Brien today.