Wall Street is buzzing about the future of Google's (GOOG, Financial) search deal with Apple (AAPL, Financial), 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 (MSFT, Financial), 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 (AMZN, Financial) and Meta (META, Financial). 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.
