Alphabet (GOOGL) owned Google has been told by the EU’s top court that it abused its market power over a dispute with Enel four years ago in a ruling which adds to its growing European headache.
2021 Dispute Ended in a $106.7M Fine
Back in 2021 Google refused to allow e-mobility app JuicePass, developed by Italian energy group Enel, access to its Android Auto platform allowing drivers to navigate with maps on their car dashboards and to send messages while behind the wheel. Google said it had blocked access because of both security concerns and the lack of a specific template. Despite their pleas, Italy’s antitrust authority fined Google $106.7 million.
In turn, Google challenged the decision at the Italian Council of State which subsequently sought guidance from the Luxembourg-based Court of Justice of the European Union (CJEU).
However, CJEU judges backed the Italian regulator today thundering that: “A refusal by an undertaking in a dominant position to ensure that its platform is interoperable with an app of another undertaking, which thereby becomes more attractive, can be abusive.” However, the Court did add some caveats – that companies can justify a refusal if there is no template for the category of apps concerned and that to grant interoperability in such a situation would compromise the security or integrity of the platform.
If that is not the case, the dominant company must develop a template within a reasonable period, it said. The ruling is final and cannot be appealed.
Google’s European Woes
The Enel issue has resolved itself since the fine was handed out, but this is a blow to Google and will mean it, and other U.S. tech giants, will have to ponder decisions on access more closely in the future. It comes in the wake of another European crisis with the European Commission set to charge Google for allegedly breaching the Digital Markets Act (DMA). This is because the company’s proposed changes to its search results failed to ease regulators’ and rivals’ concerns.
Alphabet’s shares were down 0.27% in pre-market trading.
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