Tech giant Google (GOOGL) has lost its appeal in a high-profile lawsuit brought by Epic Games, the maker of Fortnite, according to Bloomberg. In fact, the U.S. Court of Appeals for the Ninth Circuit upheld a previous ruling that found Google’s Play Store policies to be anticompetitive. This means that Google will now have to change how its app store operates and allow developers to create their own marketplaces and billing systems instead of being forced to use Google’s.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 55% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Interestingly, the original antitrust ruling, which was issued in December 2023, found that Google was running the Play Store as an illegal monopoly. Indeed, a jury determined that Google’s practices, including charging developers fees of up to 30% and making secret deals with rivals to prevent competition, unfairly limited the Android app market. In addition, Judge Margaret McKeown explained that antitrust laws can require companies to stop certain actions (even if those actions are normally legal) when it’s needed to fix or prevent unfair business practices.
In response to the court’s decision, Google stated that it had concerns about the potential impact on users and developers. It argued that the ruling could “significantly harm user safety” and reduce innovation on the Android platform. Despite the loss, Google plans to continue appealing while focusing on keeping its platform secure, according to comments made by Lee-Anne Mulholland, Google’s vice president for regulatory affairs.
Is Google Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on GOOGL stock based on 26 Buys and nine Holds assigned in the past three months. Furthermore, the average GOOGL price target of $214.42 per share implies 11.8% upside potential.
