Introduction

In a striking development for tech investors, Google stock dropped over 8% on May 7, 2025, following court testimony by Apple’s Eddy Cue during an antitrust trial involving Alphabet, Google’s parent company. Cue disclosed that Google search queries via Apple’s Safari browser declined in April—a first in years. This news triggered market shockwaves, with both Google and Apple stocks falling sharply.

The antitrust case brought by the U.S. Department of Justice focuses on Google’s alleged monopoly in internet search and the massive payments Google makes to Apple—up to $20 billion annually—to remain the default search engine on iPhones.

1. Google Search Traffic Dropped on Safari for the First Time

According to Eddy Cue, senior VP of services at Apple, Google search usage on Safari declined in April 2025. This is the first reported drop, signaling potential user migration to AI-based search tools like ChatGPT. This shift may mark a new era in online search where users prefer direct answers over traditional link-based results.

2. Antitrust Penalties Loom Large for Google

Judge Amit Mehta has already ruled that Alphabet illegally maintained a monopoly over the online search market. Remedies are expected by August and could include severe measures such as forcing Google to divest from its Chrome browser. Apple’s role is also under review, given its lucrative deal with Google to set the search giant as Safari’s default.

3. Apple May Be Building Its Own AI Search Solution

During testimony, Cue also revealed that Apple is exploring AI-powered search capabilities for Safari. If successful, this could permanently disrupt the balance of search engine dominance and weaken Google’s foothold in the mobile ecosystem.

4. Google Seeks Gemini AI Licensing Deal with Apple

Alphabet CEO Sundar Pichai recently stated he hopes to strike a licensing deal with Apple for Gemini, Google’s AI engine. Such a partnership might serve as a counterbalance against Apple’s own AI ambitions, but it also signals Google’s acknowledgment of growing competitive threats from OpenAI and others.

5. Investor Sentiment Dips with Technical Ratings

Google stock has declined 22% in 2025, with its IBD Composite Rating falling to 81—below the 90+ considered ideal for growth stocks. Its Accumulation/Distribution Rating is “C,” indicating neutral institutional activity. Apple shares are also down 22% YTD, reflecting broader investor unease across Big Tech.

Conclusion

The revelation that Google search traffic is declining on Safari underscores the shifting landscape of online search, fueled by AI innovations and regulatory scrutiny. With possible antitrust penalties on the horizon and Apple developing its own AI capabilities, Google’s longstanding dominance is at risk. Investors should closely monitor developments as the DOJ prepares remedies that could reshape how billions access the internet.

For more insights, read our full coverage on AI search wars: ChatGPT vs Google and how Chrome may be impacted by antitrust regulations.