Google is about to learn how DOJ wants to remake its empire

Published On Oct 7, 2024, 12:12 PM

The article discusses an upcoming submission by the US Justice Department in a case against Google, which is accused of monopolistic practices in the online search market. Following a ruling that found Google to be an illegal monopoly, potential remedies will be proposed. These could include breaking up the company, sharing its data with competitors, or altering agreements that make Google the default search engine on many platforms. This case could significantly impact Google's business model and the broader tech industry.

Stock Forecasts

With the potential for regulatory changes and the possibility of a breakup, Google's stock may face downward pressure. Additionally, if the ruling limits Google's ability to leverage its dominant position in search, it may affect its long-term growth prospects, leading to negative investor sentiment.

Companies like Apple (AAPL) and Yelp (YELP), which are intricately linked to Google's search business through contracts and advertising partnerships, may see a shift in their business models should these agreements be impacted. This could lead to positive investment opportunities for these stocks as they adapt to the changes.

Yelp (YELP) could benefit from a less dominant Google if the DOJ's remedies allow it more visibility in search results, attracting increased user engagement and advertising revenue, potentially leading to a bullish outlook.

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