Google Analysts React To DOJ's Proposed Remedies For Search Dominance: 'We Continue To View Structural Changes As An Unlikely Outcome'

The U.S. Department of Justice confirmed this week that it’s considering taking actions to curtail Alphabet Inc‘s GOOGL GOOG Google Search dominance. Multiple analysts reacted to the news on Wednesday.

What Happened: The DOJ announced late Tuesday that it’s considering “behavioral and structural remedies” that would stop Google from using products to give Google Search an advantage over competitors. The proposed remedies are expected to address antitrust concerns within Google’s Search business.

The potential remedies come after Judge Amit Mehta ruled in August that Alphabet’s payments to make its search engine the default option on smartphone web browsers violated U.S. antitrust law by effectively blocking competition in the space. Regulators alleged Google maintained a monopoly on online search and related advertising through billions of dollars in payments to smartphone makers. 

According to the court filing, plaintiffs are considering remedies that would limit Google’s use of contracts and other tools related to its search-related products, prevent Google from using products that give Google Search an advantage and address user behavior.

“Fully remedying these harms requires not only ending Google’s control of distribution today, but also ensuring Google cannot control the distribution of tomorrow,” the court filing states.

Check This Out: Google Cries Foul As DOJ Moves To Break Up Search Giant, Calls Recommendations ‘Radical’ As Antitrust Ruling Aims To Limit Its Search Market Monopoly

Analysts React: Wedbush analyst Dan Ives highlighted some of the proposed changes in a new note to clients on Wednesday. The analyst noted that the potential remedies for search arrangements are consistent with the firm’s prior expectations.

“We continue to view structural changes as an unlikely outcome for Google as a result of this case and expect any material business model impact will relate to search distribution,” Ives said.

Some of the proposed changes could limit or prohibit distribution agreements and impact revenue sharing agreements with key partners like Apple Inc AAPL, the analyst said.

“Importantly, Google has publicly shared its intent to appeal the ruling, which would delay any business model impact for several quarters and possibly years following a final ruling on remedies,” Ives said.

Wedbush has an Outperform rating on Alphabet with a 12-month price target of $205.

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JPMorgan analyst Doug Anmuth echoed much of the same sentiment as Wedbush in a note released Wednesday. JPMorgan has an Overweight rating on Alphabet shares with a December 2025 price target of $208.

“Overall, we do not believe there are any major surprises, but the preliminary framework carries headline risk and suggests structural changes or separation proposals are possible,” Anmuth said.

Although the JPMorgan analyst noted that the initial outline is in line with expectations, he cautioned that the language is somewhat broad in terms of specific remedies. Still, Anmuth does not expect the framework to impact shares much in the near term as investor attention shifts to earnings later this month, followed by the final DOJ proposal in November.

The DOJ is expected to submit its final proposals by Nov. 20. Google will have until Dec. 20 to propose its own changes. A final ruling is expected in August 2025.

GOOG Price Action: Alphabet shares were down 2.4% at $161.72 at the time of publication, according to Benzinga Pro.

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