Thanks to the Department of Justice, Google is facing its biggest dilemma since Larry Page and Sergey Brin played rock paper scissors on who was going to be the CEO of their startup back in 1998. 

(Source: Giphy) 

But this time, it’s a huge threat to their overall market share and their $200+ billion a year ad revenue. Think, that awkward moment when you realize you’ve been way too dependent on your ex’s Netflix account. A travesty… 

You see, last year the DOJ decided that Google and Apples partnership on customer experiences was a little too cozy for comfort - hitting them with a lawsuit, claiming that Google's deal to be the default search engine on Safari is somewhat of monopolistic gatekeeping. 

(Source: Justice.gov) 

Now obviously, for the iphone users here, this has been the way of life for pretty much ever when it comes to mobile browsing, but what initially set off the radars at the DOJ seemed to be the extensive amount Google ponied up to keep its edge. 

As it turns out, Google paid Apple a whopping $20 billion in 2022 to keep this gig going. Which in the grand schemes of things is pretty much nothing when you’re capitalizing on ad revenue from 1.46 billion eyeballs that come from iPhone users in 2024. 

(Source: Giphy) 

Yet, the DOJ’s threat is no doubt a looming nightmare that has forced Google to scramble in somewhat of a panic. So what’s Google’s master plan as of now? Well they’re trying  to get more iPhone users to switch from Safari to their own apps, aiming to double the number of searches performed through their apps by 2030. 

(Source: Giphy) 

Right now, they’re stuck in the low 30% range, which is about as impressive as my high school ACT scores. They’ve thrown everything at the wall—exclusive features like Lens image search and the Discover feed—but it’s been about as effective as trying to sell ice to an Eskimo.

(Source: Gizchina) 

So it’s clear that the stakes are higher than ever for both companies involved. For Apple, losing Google’s cash cow would be a major blow. For Google, getting kicked off Safari would be like losing 70% of their iPhone search traffic. Again, that’s a lot of eyeballs and ad dollars slipping through their fingers.

But while Google has been pushing Iphone users to switch to Chrome, let’s be real, convincing someone to change browsers they have defaulted to for so long is like asking a caffeine addict to switch from coffee to tea. 

(Source: Giphy) 

It’s a tough sell. Even with promises of AI enhancements and other shiny new features, progress on relinquishing Google’s dependency on Safari has been considered a lost cause to some extent. 

Now obviously, the ruling hasn’t come in yet. The DOJ will solidify its decision sometime in the next few months, which gives us investors some time to think about how this tech behemoth allocates in our portfolios. 

(Source: Giphy) 

There’s no question that once this ruling comes in, Googles price will be impacted. It might be a little, it might be a lot (especially considering Google’s stock price is already bound for a deep correction in the future)… 

But regardless there still may be a silver lining when it comes to our friends across the atlantic: the European market. According to reports, the EU’s Digital Markets Act (DMA) could force Apple to let users pick their browser during setup. This rule, starting from iOS 17.4, could give Google a fighting chance to snag more iPhone users. However, banking too much on Europe is like putting all your eggs in one basket—a risky move that could backfire.

(Source: Giphy) 

So what’s the takeaway on this beautiful Sunday? 

Well simply put, make sure to do a double take and ensure your allocations are in order. Google has been a top performer for many investment accounts across the world, and with this looming threat from the DOJ, it could shake things up for Google more than ever. Especially considering the amount of eyeballs this ruling could snatch away from the tech conglomerate. 

(Source: Giphy) 

Because when it comes down to it… the amount of eyeballs a company controls, the more power they have. So it’s not just business that the DOJ is threatening, it’s power, and little power results in little value. 

So with that said, while Google may still come out of this unscathed it’s definitely better to be safe than sorry in the days ahead. Not trying to be a buzzkill this Sunday, but hey someones got to be the Debbie downer sometimes. 

(Source: Giphy) 

Stocks.News holds positions in Apple and Alphabet (Google) as mentioned in the article.