Wait, Is the DOJ Lawsuit Actually Bullish For Alphabet?
The government continues to go after the big technology companies. In September, the Department of Justice's (DOJ) antitrust case against Google's search engine monopoly began its trial, with testimonies from various business leaders illuminating the workings of the important sector. (NASDAQ: GOOG) -- parent company of Google -- has an estimated 90% share of the search engine market and has wiped the floor with any competitor for years. The DOJ is arguing that its distribution deals with hardware makers like Apple harm competition and unfairly enforce its monopolistic position.
While antitrust cases can lead to regulation and future profit losses, strangely, in this case, Alphabet may actually benefit if the DOJ wins its antitrust suit. Here's why.
This DOJ case centers around three technology giants: Apple, Alphabet (Google), and Microsoft. There are a few other parts to the suit, but the most important topic by far is Alphabet's distribution deal with Apple. Alphabet pays Apple a handsome sum every year -- some estimate upwards of $20 billion -- to have Google be the default search engine on its Safari browser. This does not make Google the only search engine Apple users can try, but the one that is pre-installed onto the Safari engine.
Source Fool.com
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