Moody’s Ratings said Wednesday that Google’s loss in an historic antitrust case was “credit negative” for parent company Alphabet as well as Apple, which the search giant pays tens of billions of dollars a year for default placement on its Web browser and phones. The ruling is negative for Alphabet’s credit because “it may need to alter its very profitable business model that made it a dominant force in targeted advertising,” Moody’s analysts wrote. It is negative for Apple because “it stands to lose a highly profitable, substantial revenue stream,” they wrote. Read More...
Moody’s Ratings said Wednesday that Google’s loss in an historic antitrust case was “credit negative” for parent company Alphabet as well as Apple, which the search giant pays tens of billions of dollars a year for default placement on its Web browser and phones. The ruling is negative for Alphabet’s credit because “it may need to alter its very profitable business model that made it a dominant force in targeted advertising,” Moody’s analysts wrote. It is negative for Apple because “it stands to lose a highly profitable, substantial revenue stream,” they wrote.
