Analysts at Jeffries say it’s “very likely” the U.S. Department of Justice (DOJ) will ban Google’s longtime search deal on iPhones, a decision Jeffries predicts could plummet Apple’s stocks by as much as 11%.
Google has been at the center of the biggest antitrust trial in decades, as the DOJ questions practices that have kept the search engine front-and-center on smartphones and web browsers. Google has paid billions to Apple and others annually to have a prominent spot on devices up until now, but Jeffries analysts on Wednesday predicted the DOJ would ban those deals in the future as it tries to break up any search monopoly. Jeffries estimates the $25 billion deal makes up 20% of Apple’s pretax profit, or about 6.3% of total revenue, representing an 8-11% hit on share prices.
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Analysts at Jeffries say it’s “very likely” the U.S. Department of Justice (DOJ) will ban Google’s longtime search deal on iPhones, a decision Jeffries predicts could plummet Apple’s stocks by as much as 11%.
Google has been at the center of the biggest antitrust trial in decades, as the DOJ questions practices that have kept the search engine front-and-center on smartphones and web browsers. Google has paid billions to Apple and others annually to have a prominent spot on devices up until now, but Jeffries analysts on Wednesday predicted the DOJ would ban those deals in the future as it tries to break up any search monopoly. Jeffries estimates the $25 billion deal makes up 20% of Apple’s pretax profit, or about 6.3% of total revenue, representing an 8-11% hit on share prices.