Even the biggest names in tech quail at the notion of going up against government watchdogs, if for no other reason than they have a lot more lawyers. Alphabet (NASDAQ:GOOG) found this out just recently and seems to have reached a tentative settlement with several U.S. states over pricing issues in the Google Play store. Investors weren’t exactly thrilled, and they sent Alphabet shares down fractionally in Wednesday morning’s trading.
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Not so long ago, a 30-state coalition, on behalf of 21 million Google Play Store users, took aim at Alphabet’s Google operation over issues of pricing in the Google Play Store. While that doesn’t sound like the kind of thing that would normally prompt hauling out the government’s big guns, in this case, it did. The states’ attorneys general alleged a violation of antitrust laws, and the case went on. The settlement reached just today may put an end to the matter.
The terms of the deal weren’t disclosed, but Google seems to believe it will work, eventually, as its attorneys motioned that a November 6 trial be postponed accordingly. However, even if this does work, Google isn’t out of the woods yet. It will still have to take on cases from Epic Games and Match Group (NASDAQ:MTCH) over issues of pricing and payments, as this settlement doesn’t include them.
Not surprisingly, analysts are looking for things to turn out for the best. With seven Buy ratings and two Holds, Alphabet stock is considered a Strong Buy with analysts. Further, Alphabet stock offers investors 4.81% upside potential thanks to its average price target of $142.33.
