Alphabet’s Google (GOOGL) is set to appeal the latest court ruling in the Epic Games antitrust lawsuit. Yesterday, a judge ruled that Google must open up its Play Store to competitors, allowing consumers to download alternative apps on Android smartphones among other things. In response, Alphabet has put out a statement on why it is appealing the Epic Games verdict, the main point being that Android and Apple (AAPL) are open competitors in the apps market.
Google’s main argument is that while Android operates an open platform, its direct rival Apple operates a closed one, and Epic’s proposed remedies stand to thwart healthy competition, hurting developers’ ability to offer apps. Moreover, opening up the Play Store will put consumers’ privacy and security at risk.
Google also pointed out that Android has always promoted choice and flexibility such as multiple app stores and sideloading. In essence, Google contends that the ruling is completely opposing another court’s ruling based on similar claims that Epic Games had made against Apple. Google also argues that the verdict will hurt consumers, developers, and device makers and is going to request the courts to pause the verdict and changes, pending the appeal.
Google’s Appeal is Based on These 3 Prime Reasons
- Google and Apple Compete Directly in the Same Market for Consumers – Alphabet noted that both Google and Apple compete in the same market for consumers. It is evident when consumers make a choice to buy smartphones based on the price, quality, and security features between Android and iOS-based iPhones.
- Google and Apple Compete Directly for App Developers – Alphabet noted that every developer in the world chooses between developing apps for either Android or iOS devices. Google wants to offer the best apps first on its Play Store, and hence, it builds tools, runs training programs, and invests in making it easier for developers to develop apps for Android. In fact, Apple does the same for its iOS apps, wherein both compete directly for the same set of developers in the apps market.
- Android is an Open Platform and not the only Means to get Apps – Google once again reiterated the fact that Android is an open platform, allowing for multiple app downloads and sideloading. Developers have many alternatives to offer their apps, including offering them directly through websites. Several Android devices often come with other preloaded app stores, reflecting its open nature. Meanwhile, Apple’s iPhone does not offer similar options to download competing apps or sideloading.
Overall, Google argues that Android has always encouraged giving more choices to customers, reducing prices, and democratizing access to smartphones and apps. Yesterday’s verdict puts at risk Android’s ability to compete effectively with Apple for customers and developers in the apps market.
Is Google Stock a Good Buy?
Analysts remain highly optimistic about Google stock’s trajectory. On TipRanks, GOOGL stock commands a Strong Buy consensus rating based on 30 Buys and nine Hold ratings. The average Alphabet Class A price target of $202.11 implies 24% upside potential from current levels. Year-to-date, GOOGL shares have gained nearly 17%.
