DOJ remedies ‘close to worst-case’ for Google, says Wells Fargo

Wells Fargo analyst Ken Gawrelski says the Department of Justice proposed remedies in Google’s search antitrust case is “close to worst-case scenario.” The Justice Department has made a “relatively dramatic ask,” but the case is far from over, including a likely DOJ leadership change, the analyst tells investors in a research note. Wells views the DOJ’s remedy filing as the likely worst-case scenario for Google and sees opportunity for further negotiation in proposed remedies with the upcoming change in DOJ leadership. It sees “meaningful risk” to Google’s competitive position due to the behavioral remedy proposal that prohibits the company from paying for search distribution. The DOJ’s structural remedy proposal of Chrome separation, if accepted by the judge, potentially puts at least 15% of Google search revenue at risk, contends the firm. It keeps an Equal Weight rating on Alphabet (GOOG) (GOOGL), the parent of Google.