Wall Street is buzzing about the future of Google's (NASDAQ:GOOG) search deal with Apple (NASDAQ:AAPL), thanks to the Department of Justice's latest antitrust crackdown.
According to J.P. Morgan analyst Doug Anmuth, the DOJ's revised proposal isn't a massive departure from the original, but it still spells trouble for Google. The biggest issue? Google could be banned from paying Apple to remain the default search engine in Safari, a move that would shake up the multi-billion-dollar agreement.
Google has reportedly forked over $20 billion a year to Apple for that top search spot. If that deal falls apart, Apple might turn to Microsoft (NASDAQ:MSFT), team up with OpenAI, or even launch its own search engine.
Meanwhile, Barclays analysts, led by Ross Sandler, believe this shift could create an opening for competitors like Amazon (NASDAQ:AMZN) and Meta (NASDAQ:META). They also suggest Google may want to strike a deal with the DOJ before things get worse, as a final ruling is expected in August.
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