Alphabet’s (NASDAQ:GOOGL, GOOG) Google blocks its competitors from around 50% of all U.S. search queries, according to the Department of Justice’s (DoJ) economic expert, Michael Whinston. Whinston believes that Google’s dominant position in the search industry is fortified by forming exclusive agreements with mobile device manufacturers and PC browser developers, allowing Google to be the default search engine on their respective devices.
Whinston was hired by the DoJ to evaluate whether Google’s agreements are anti-competitive. The evaluation is regarding Google’s antitrust case, which alleges the company is paying over $10 billion to companies, including Apple (AAPL) and Samsung Electronics (GB:SMSN), to remain the default search engine on their devices.
Whinston’s Findings
Based on the internal data provided by Google, Microsoft (MSFT), and other search engine operators, Whinston said that Microsoft’s Bing and DuckDuckGo have access to approximately 33% to 50% of all searches conducted in the United States.
Whinston’s analysis reveals that nearly 20% of searches are conducted through Google’s Chrome browser, which users download onto their devices. He further estimates that around 33% of all U.S. searches are locked into using the default search engine, which leaves a limited 17% for competing search engine providers.
Is it a Good Time to Buy GOOGL Stock?
The DoJ’s antitrust trial against Google did little to sway Wall Street analysts’ bullish outlook on the stock. Regardless of the trial outcome, Alphabet’s strong market presence, growing artificial intelligence offerings, and rising potential in the cloud unit keep it well poised for growth.
Alphabet stock has a Strong Buy consensus rating on TipRanks. The average price target of $150.50 implies 8.2% upside. The stock has gained about 56% so far in 2023.
