DOJ’s Google determination already captured in Apple estimates, says UBS

Google (GOOGL), as part of the remedies proposed by the Justice Department, is prohibited from entering into or maintaining “exclusive distribution agreements” covering Google Search, Chrome, Google Assistant and its GenAI products with partners including Apple on any device, but won’t be banned from making payments or offering other consideration to distribution partners for pre-loading or placement of Google products, effectively keeping the door open for Google to continue to pay Apple (AAPL) an estimated $20B-$25B annually, UBS analyst David Vogt tells investors in a research note. The firm, which says that while the Google determination is less onerous than feared but is already captured in Apple estimates, made no change to its Neutral rating or $220 price target on Apple shares.