In a statement released on Nov. 13, the Turkish Competition Authority stated that it has fined Google 196.7 million Turkish Lira ($25.5 million) for allegedly abusing its market dominance, the Associated Press reported.
The Turkish regulator indicated that Google and its parent company Alphabet (GOOGL) made it difficult for companies to appear in searches if they did not generate ad revenue for Google, thus abusing its leadership power in the ad space.
The Turkish authority said that the company would have six months to ensure “active competition in the market” by taking remedial measures. Also, the company will have to present compliance measures and annual reports for five years.
In February, the Turkish Competition Authority had fined Google 98 million Lira for abusing its dominant position and for its aggressive competition tactics. (See GOOGL stock analysis on TipRanks)
Last month, the US Department of Justice filed an antitrust lawsuit against Google, alleging that the tech giant uses anticompetitive practices to maintain the monopoly of its search engine and related advertising business.
Meanwhile, Credit Suisse analyst Stephen Ju recently increased the price target on Alphabet to $1,950 from $1,850 and reiterated a Buy rating. In a research note to investors, Ju noted that the company exceeded expectations across nearly all reporting lines as advertisers continued to return to the platform.
Ju sees ongoing monetization improvements in Search advertising through product/AI-driven updates, greater-than-anticipated revenue contribution from the non-search businesses, optionality and shareholder value creation from new monetization initiatives such as Maps, Discover tab, as well as the eventual commercialization of Google’s ‘Other Bets’ like Waymo and life sciences.
Shares have risen 32.4% year-to-date and the average analyst price target of $1,928.70 implies an upside potential of 8.8% in the coming 12-months. Overall, Alphabet scores a Strong Buy analyst consensus with 28 Buys, 1 Hold and no Sell ratings.
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