Tech giant Google (GOOGL) is asking the U.S. Supreme Court to pause a recent ruling that would force it to make major changes to its app store. This comes after a lower court said in September that Google must stop requiring developers to use its Google Play Billing system. The court also ruled that developers must be allowed to link to their own payment systems, set their own prices, and offer other ways to download their apps. Google has until October to follow the order unless the Supreme Court steps in.
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Unsurprisingly, Google argues that the decision is “unprecedented” and would harm its ability to compete fairly. More specifically, the company states that it would have to rebuild the entire Android system, which could create security risks for both users and developers. It also says that the ruling would force Google to support its competitors, as it would be required to distribute apps and tools that go against its own business interests. That’s why it’s asking the Supreme Court to delay the changes while it gets ready to appeal.
Interestingly, this all started with a 2020 lawsuit by Epic Games, which is the company behind the video game Fortnite. Indeed, Epic claimed that Google had too much control over how people access and pay for apps on Android devices. And in 2023, a jury agreed with Epic. As a result, the court’s ruling is now pushing Google to open up its system. Nevertheless, Google plans to officially file its appeal with the Supreme Court by October 27, and hopes the Court will pause the ruling in the meantime.
Is Google Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on GOOGL stock based on 30 Buys and nine Holds assigned in the past three months. Furthermore, the average GOOGL price target of $244.14 per share implies 0.6% downside risk.
