Google parent company Alphabet (GOOGL) is being given more time to overhaul its Android app store called “Play.”
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A federal judge in California has granted Alphabet’s request to temporarily pause his order that required the technology company to change its Play Store by November 1 to give consumers more choice over how they download apps and pay for them.
U.S. District Judge James Donato had initially ordered the changes to the Play Store as part of his ruling in an antitrust lawsuit that was brought against Google by video game developer Epic Games. Alphabet successfully argued that rushing changes to the Play Store by November 1 would harm the company and introduce “security and privacy risks” into the Android ecosystem.
Alphabet also requested a pause on changes to its Play Store while it appeals the judge’s ruling in the legal case.
Changing the Google App Store
In the Epic Games lawsuit, a jury found that Google illegally monopolizes how consumers download apps on Android devices and how they pay for in-app purchases. The judge subsequently ordered Alphabet to allow users to download competing third-party Android apps in the Play Store and to allow the use of competing in-app payment methods.
The judge’s order had also barred Google from making payments to device makers to preinstall its app store and from sharing revenue generated from the Play Store with app distributors. Lawyers for Alphabet have argued that the company cannot be considered a monopolist because Play and Apple’s (AAPL) App Store are direct competitors.
Is GOOGL Stock a Buy?
Alphabet has a consensus Strong Buy rating among 39 Wall Street analysts. That rating is based on 30 Buy and nine Hold ratings issued in the last three months. There are no Sell ratings on the stock. After a 17% year-to-date rally, the average GOOGL price target of $201.57 implies 23.34% upside from current levels.
