Apple will face a class action in Canada over its long-running arrangement to make Google the default search engine in Safari, after a British Columbia Supreme Court judge certified the case.
The lawsuit claims the agreement discouraged competition in search and allowed Google to charge advertisers more than it otherwise could. According to a report by 9to5Mac, evidence from the US Department of Justice's antitrust trial against Google plays a central role in the Canadian proceedings.
How the Canadian Case Began
The suit was filed in 2021 by Spark Event Rentals Ltd., an event rental business based in British Columbia. It alleged that Apple and Google conspired to restrict competition in the search market, enabling Google to set artificially high prices for search advertising.
Both companies were originally named as defendants. The plaintiff later dropped Google after a dispute over an arbitration clause in Google's advertising contracts, leaving Apple to face the claims alone.
Apple's Defense
Apple has argued that its deal with Google is a legitimate distribution arrangement, not an illegal conspiracy. The company also contended that Google, not Apple, is the proper party to answer the allegations.
In its filings, Apple characterized itself as an innocent bystander in the matter. That argument did not prevent the case from moving forward at the certification stage.
What the Judge Decided
Justice Thomas found enough grounds to examine whether Google's revenue-share payments, worth billions of dollars, deterred Apple from building its own search engine. He concluded the pleadings plausibly describe an agreement not to compete under section 45 of Canada's Competition Act.
The judge drew on testimony from Apple executives Eddy Cue and John Giannandrea given during the US trial. He wrote that this material provides "some basis in fact" for inferring Apple stayed out of search because of its agreement with Google.
He also acknowledged Apple's objection that the plaintiff had selectively chosen evidence, but said that approach was acceptable at this early stage. The ruling does not find that Apple acted anticompetitively; it only permits the allegations to proceed as a class action.
Who the Class Covers
The class includes Canadian residents who bought Google search ads since 2005, the year Apple and Google first agreed to make Google the Safari default in exchange for a share of advertising revenue.
The suit seeks compensation for advertisers who allegedly overpaid, and the court has allowed a claim for punitive damages to move forward as well. No trial date has been set.
Part of a Wider Regulatory Picture
The Apple-Google search arrangement has drawn regulatory attention in the United States, the United Kingdom and Australia, while related concerns about search competition have been examined in the European Union and Japan.
In August 2024, a US federal judge ruled that Google had illegally maintained its search monopoly through anticompetitive agreements, including the one with Apple. That finding and the trial record are now being cited in courts beyond the US.
What It Means for Apple and Advertisers
For Apple, the certification signals that legal exposure from its Google deal is not limited to cases where Google is the main target. Lucrative default-placement payments can create liability for the company receiving them, not just the one paying.
For advertisers and the businesses that depend on search ads, the case offers a potential path to recover alleged overcharges. More broadly, it shows how evidence surfaced in one country's antitrust trial can shape litigation elsewhere.
Source: 9to5Mac
