Google could soon be forced to end its default search deal with Apple, a move that would save billions in annual payments. Mackenzie Sigalos reports on why some experts see this as a potential advantage in Google’s fight against AI challengers.

A pending court ruling in the Google search antitrust trial could prohibit Google from paying over $26 billion annually to be the default search engine on devices and browsers. Experts, including a former FTC chair, argue that Google’s dominance is due to its search engine’s effectiveness rather than these payments, as seen in Europe where user choice did not significantly alter market share.

Legal and economic analysts suggest that ending these payments could allow Google to redirect significant resources toward developing its AI initiatives, such as Gemini, to better compete with emerging AI-native rivals like OpenAI and Anthropic. These competitors are rapidly gaining ground, with OpenAI’s ChatGPT reportedly doubling its share of the search market in six months, reflecting a shift in how users seek information.

Antitrust ruling could end Google’s $26 billion default deals

Remedies in the Google search antitrust trial expected any day now and could spell the end of Google's exclusivity deal with Apple. For today's tech check, Mackenzie Sagalos explains why that might actually be a silver lining for Google. Morning, Mack. Hey, good morning, Carl. So Google has been paying over $26 billion a year to secure those default statuses on phones and browsers, but with the court ruling looming, that spend could soon be banned, a shift that some experts say could ultimately benefit the company. I spoke to competition economists, including a former FTC chair, and their view is its search functions as a natural monopoly, a utility that's more like water, rewarding scale as people stick with what works. And that's why Google's market share is barely budged in Europe, even after regulators forced users to pick their own default. Apple made the same point in court. Its lead negotiator on the Google contract testified that there was no price that Microsoft could offer to make the switch to Bing because Google delivered the better user experience and monetization engine. Now, these deals began back in 2003. That was well before the iPhone or Chrome, when Firefox had 30% of the browser market and no one had one search. But even after Microsoft poured $100 billion into Bing, it still hasn't come close. And that's why legal experts say that these payments are no longer about driving demand, they're innovation insurance, meant to freeze the market and fend off future threats. And now the bigger threat is coming from generative AI. And that's why Wall Street sees upside if Google stops spending nearly a quarter of its operating income on default deals and redirects that cash into Gemini and its more urgent battle against AI native challengers like OpenAI and Anthropic, which don't have those legacy ad businesses to protect. OpenAI CFO Sarah Fryer told CNBC the company estimates Chachibit holds 12% of the search market, double what it was six months ago, as conversational queries begin to fundamentally reshape how people seek out information. Guys? Okay, Mackenzie Sagalas. Mackenzie, thank you very much.

An eyewitness says American subcontractors at Gaza Humanitarian Foundation sites shot at Palestinians, a claim GHF denies.

Tel Aviv-Yafo

Middle East Conflict

Eyewitness claims U.S. subcontractors fired at Palestinians in Gaza

California Gov. Gavin Newsom has signed a bill that will allow voters to decide on new congressional maps in November.

California

Newsom signs bill putting new California congressional maps on ballot

The U.S. is sending three warships to the waters of Venezuela as part of a major counter-narcotics operation, a White House official confirms.

Washington

U.S. warships head to Venezuela to combat drug cartel threats

A New York appellate court threw out a $527 million penalty in the civil fraud case against President Trump and several others. CBS News' Aaron Navarro reports.

New York

Trump civil fraud case $527 million penalty thrown out

The U.S. and the European Union have locked in a framework trade deal that includes a 15% U.S. tariff on most EU imports, including autos, pharmaceuticals, semiconductors and lumber.

Global Tariffs

U.S. and EU lock in trade deal

Israel says it began its military operation to take control of Gaza City. This comes after an apparent Hamas attack in Khan Younis targeting Israeli soldiers.

Jerusalem

Israel says it began Gaza City expansion

After weeks of pushback from Democrats, House Republicans in Texas have passed controversial legislation to redraw the state's congressional map, giving the GOP an advantage in multiple seats.

Austin

Texas House passes controversial GOP redistricting map

U.S. President Donald Trump’s top-down diplomacy has experts in Ukraine skeptical about whether there has been enough preparation for proposed talks to actually end the war between Russia and Ukraine.

Moscow

Ukraine Invasion

Russia signals more talks needed before Zelenskyy-Putin meeting

The Texas House on Wednesday night passed a controversial, Republican-backed proposal to redraw the state's congressional maps. The bill now moves onto the Texas Senate. CBS News reporter Erica Brown has more.

Texas

Texas House approves GOP congressional redistricting map

Israel's military has called up tens of thousands of reservists in preparation for an expected assault on Gaza City, as the Israeli government considered a new proposal for a ceasefire after nearly two years of war.

Israel calls up 60,000 reservists ahead of Gaza City operation

The Trump administration says it is adding 407 items to the list of "derivative" steel and aluminum products subject to higher tariffs. The list includes products like car parts, household appliances, baby strollers, fire extinguishers and spray deodorants.

Trump expanding steel and aluminum tariffs

NATO military chiefs met virtually Wednesday for what was described as a candid discussion about security guarantees the alliance would be willing to provide to Ukraine in an effort to end Russia's war in the region.

Brussels

NATO chiefs meet virtually about potential Ukraine security guarantees

Israel's military leaders approved the next phase of their ongoing offensive in the territory. The operation will shift focus to Gaza City, targeting areas where Hamas is believed to still be active and where Israeli forces have not yet operated.

Israel approves next phase of Gaza offensive, focus on Gaza City

Despite not making landfall, Hurricane Erin is forcing mandatory evacuation orders in parts of North Carolina and is expected to cause rip currents for days along the U.S. East Coast.

North Carolina

Hurricane Erin forces evacuations on U.S. East Coast

The White House says it is working to secure a meeting between the presidents of Russia and Ukraine, which both have agreed to, while plans continue to create security guarantees for Ukraine.

Trump says no U.S. ground troops will be sent to Ukraine

Hamas has agreed to a ceasefire proposal for Gaza, but mediators are still waiting for an official response from Israel. CBS News contributor Robert Berger has the latest from Jerusalem.

Mediators await Israeli response to Gaza ceasefire proposal

Indian Prime Minister Narendra Modi met China’s top diplomat on Tuesday and hailed the “steady progress” made in improving the bilateral relationship after a yearslong standoff between the nuclear-armed Asian powers.

New Delhi

India's Modi meets China's foreign minister to rebuild ties

Texas Democrats who ended a walkout found themselves shadowed by law enforcement officers to keep them from repeating the protest that stalled Republican efforts to redraw congressional districts and fulfill President Donald Trump's desire to reshape U.S. House maps.

Police escort Texas Democrats to prevent new redistricting walkout

Air Canada has reached a tentative agreement with the Canada Industrial Relations Board (CIRB), ending the strike that began over the weekend involving 10,000 members and disrupted travel for more than 100,000 travelers per day.

Toronto

Air Canada reaches tentative agreement with flight attendant union

Exiled former Hong Kong lawmaker Ted Hui hailed Australia's grant of asylum status as a key acknowledgement of the territory's human rights infringements since its authorities quelled massive pro-democracy protests in 2019.

Hong Kong Island

Ex-Hong Kong lawmaker granted asylum by Australia

Forecasters are giving urgent warnings to millions of people who live along the East Coast as Hurricane Erin churns in the Atlantic. The storm will not make direct landfall but is expected to bring dangerous rip currents.

East Coast of the United States

Hurricane Erin to bring dangerous rip currents to U.S. East Coast

Jasveen Sangha, a Los Angeles woman known as the "Ketamine Queen," has agreed to plead guilty to federal charges in connection with the death of actor Matthew Perry. Sangha could face up to 45 years in prison.

Los Angeles

"Ketamine Queen" to plead guilty in Matthew Perry's death

European leaders who converged on the White House for talks on the Russia-Ukraine war demonstrated a united front regarding Ukraine's security on Monday, underscoring the issue as pivotal for the entire continent, not just Ukraine.

EU leaders show cautious optimism following Zelenskyy, Trump talks

As Hamas reportedly agreed to some ceasefire terms that would include the return of more hostages, Israeli Prime Minister Benjamin Netanyahu ordered troops to take more of Gaza.

Israel digs in on Gaza takeover as Hamas softens on ceasefire

President Donald Trump said that the United States would help Europe in providing security for Ukraine as part of any deal to end Russia's war in Ukraine.

Trump tells Zelenskyy U.S. would help with security in a peace deal

Bolivia's presidential vote headed to an unprecedented runoff after elections Sunday that ended more than two decades of left-wing dominance in the Andean nation but signaled voters' trepidation about a major lurch to the right.

La Paz

Bolivia heads to runoff after historic defeat for the left

All Air Canada planes were grounded on Monday (August 18) after its 10,000 flight attendants refused a return-to-work mandate from the Canadian government.

Air Canada delays plans to resume operations

Ukrainian President Volodymyr Zelenskyy arrived at the White House Monday (August 18) for his meeting with President Donald Trump and other European leaders about Russia's war in Ukraine. CBS News White House reporter Taurean Small has more.

Trump meeting with Zelenskiy, European leaders at White House

Hamas on Monday informed mediators that it had accepted a ceasefire deal proposal submitted to it the day before, according to international and Israeli outlets.

Reports: Hamas accepts latest Gaza ceasefire proposal

Hurricane Erin will bring dangerously rough surf to parts of the U.S. East Coast. Over the weekend, Erin's outer bands lashed Puerto Rico with up to 7 inches of rain and flooding parts of the island.

Breakdown