DOJ antitrust win over Google will ‘very likely’ kill $25B iPhone search deal with Apple: Jefferies

In a declaring recently, the DOJ said it is considering whether to ask Mehta to get a breakup of Google’s empire with divestment of possessions such as its Chrome internet browser, its Google Play application store or its Android operating system.

“Federal government overreach in a fast-moving sector might have negative unexpected effects for American innovation and America’s consumers,” Google’s vice head of state of governing affairs Lee-Anne Mulholland stated in a post. “We eagerly anticipate making our arguments in court.”

Google is “likely” to be disallowed from paying billions of dollars each year to Apple to ensure its search engine is made it possible for by default on apples iphone after its spectacular loss to the Justice Department in a spots antitrust trial, according to analysts at Jefferies.

Still, any kind of influence to the bottom lines of Google and Apple is likely far off in the future. Google has already said it is appealing Mehta’s initial judgment in the search test, while chief executive officer Sundar Pichai has alerted that the court battle will certainly take “years” to settle.

“In addition, although an exclusive deal would unlikely be permitted, the DoJ might not stop GOOG from having a revenue share arrangement with AAPL, as long as it is not an unique bargain and AAPL would allow other online search engine to be available for customers to pick from,” the note added.