Barclays Sees Limited Impact of Google Antitrust Suit on Microsoft (MSFT)

Barclays Bank has released a report indicating that the U.S. Department of Justice’s antitrust lawsuit against Google (GOOG, GOOGL) is unlikely to significantly impact Microsoft (MSFT, Financial). Barclays has given Microsoft an “overweight” rating with a target price of $475.

Analyst Raimo Lenschow noted that Bing, Microsoft’s search engine, constitutes only a small fraction of Microsoft’s total revenue, accounting for 5% in the fiscal year 2024. Consequently, many software investors might not be closely following the ongoing investigation. However, Lenschow suggests that Microsoft investors should pay attention to the final judgment in this case, as it could bring about changes impacting Microsoft’s market share.

Should the remedies require Google to terminate revenue-sharing agreements with other global companies and reorganize its search services, Bing might capture some additional market share. Google may need to share part of its technology with partners and provide search text ads in the U.S., retaining only 10% of its total revenue. Furthermore, Google may be limited to integrating only 25% of search text ads, prompting partners, like Apple, to seek alternatives such as Bing.

Lenschow highlighted that these scenarios could present Microsoft with a unique opportunity to gain market share. Nevertheless, he acknowledged that any changes are expected to be gradual, with noticeable effects not anticipated until 2027.

MORE IN INSIDE INVESTMENT NEWS

Marvell shares Tumble 8%: Decoding Investor Expectations and AI Growth

Published: Friday, August 28, 2026 · 6:43 AM

Nvidia Earnings Bolster AI Confidence: A CIO’s Alpha Play

Published: Thursday, August 27, 2026 · 5:32 AM