DOJ’s Google Search remedies ‘more punitive than expected,’ says JPMorgan

After the DOJ submitted its proposed final remedies last night in its Google Search fight, JPMorgan analyst Doug Anmuth said the “very comprehensive set of remedies” includes parts that the firm believes are “more punitive than expected,” including around consumer choice limitations and syndication of search data and ads. The DOJ seeks to “prohibit Google from offering anything of value” to Apple (AAPL) and other third-party distributors, which the firm thinks could disincentivize Apple from offering consumer choice and instead push Apple to explore other options including shifting default search from Google to a competitor such as Microsoft (MSFT), OpenAI, or some combination of those or other providers or to try building or buying search themselves. While the DOJ’s final proposal should represent “the worst possible remedies,” the firm expects Google’s proposed final remedies due on December 20 to be “much more modest,” and ultimately believes the judge’s final decision next summer will be more balanced between the DOJ & Google’s remedies. JPMorgan has an Overweight rating and $212 price target on shares of Google parent Alphabet (GOOG) (GOOGL).