Google CEO DOJ Suite and fired on ‘Code Red’ accident

• Google Announces Parent Alphabet Gangbuster Revenues, Revenues Rising Wall Street Expectations.
• It’s music to investors’ ears, but CEO Sundar Pichai fired on a recent Justice Department lawsuit over a revenue call.
• Analysts and investors are concerned about the potential impact of this case, specifically asking whether the loss of Google’s exclusive deal with Apple is “code red”.
• Pichai sought to allay concerns that the case would be a distraction for Google in the 90s for Microsoft.
• Visit the Business Insider homepage for more stories.

Google Parent Alphabet has just started Some impressive Q3 numbers, Hitting Wall Street expectations and sending its stock seriously into trading after hours.

But analysts and investors cannot shake the shadow of the Justice Department lawsuit filed against Google last week. In the company’s revenue call, CEO Sundar Pichai tried to preempt questions on the case, saying Google “confidently makes our case” to analysts and investors.

“Regarding DoJ’s lawsuit, we believe our products are creating significant consumer benefits and we will make our case with confidence,” he said. “Our organization is focused on continuing our work to create a search product that people like and value.”

But analysts continue to question the claim and Google’s partnership with Apple as the actual search provider on its devices – a billion $ 8 billion plus annual deal that is now in the shopping block.

“Is this really a ‘code red’ situation, or is it something we can handle?” Barclays analyst Ross Sandler was asked to mention the internal code name at Google for the possibility of losing a lucrative deal.

“Most of our partners choose us because we are the best search provider,” Pichai responded. “Customers say we have the highest search quality, so there’s an organic demand for it. And we believe in investing in our experience on our platforms, so we are absolutely committed to making sure we can serve our customers everywhere and we’re really focused on that.

Pichai was also asked if it was possible for Google to find “a common ground” with DOJ.

“Observation is not new to us, in some ways it is not sector-wide and not surprising,” he responded. “We engage constructively where possible and as we have shown in the last few cases … we have confidence in the benefits we bring to our customers, we make our case where there is feedback or judgment, we will be flexible and adapt. So we build it.

At another point, Pichai made a clear attempt to dispel any concerns that the case might be a distraction to the organization.

When Microsoft fought its own case with the Justice Department in the 1990s, distraction slowed the company’s ambitions and allowed rivals such as Google to advance in areas such as mobile.

“There is a lot in the legislative and regulatory sector, some of which when created will also create certainty and in some cases even clarity and opportunities,” he said. “So we have a framework to approach it, and we take a long-term perspective towards it.

“But at the end of the day, what’s under our control is our ability to focus mercilessly on customers and build great products and that’s where most of our energy goes.”

In Apple’s revenue call late on Thursday, CEO Tim Cook was also asked about a lucrative search deal with Google, which would net Apple between $ 8 billion and $ 12 billion a year, analysts said. Apple chief underestimated the importance of the deal and the potential for immediate repercussions.

“I do not know how the DOJ suite will go, but I think it’s far from a conclusion on that.”