Alphabet’s (GOOGL) Google has urged the U.S. appeals court to overturn an earlier ruling that required it to significantly change its Google Play Store app functionality. Google filed initial arguments with the San Francisco-based 9th U.S. Circuit Court of Appeals, detailing how the trial judge’s ruling was unfairly biased toward the plaintiff, Epic Games.
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Last year, Google lost an antitrust trial to Fortnite creator Epic Games, accusing the search engine giant of monopoly in the app store market and in-app payment system. Following up on the ruling, in October this year, Judge James Donato ordered Google to open up its App Store to developers to set up competing apps and offer billing options other than its in-house payment system to consumers. Google had determined at the time to appeal the Epic Games ruling on three prime reasons.
Details of Google’s Appeal
Google argued that revamping its Google Play Store and Android operating system would hurt app developers and consumers. The company also said that the jury should not have been allowed to hear Epic Games’ arguments since the lawsuit was related to Google’s conduct, not compensation. Instead, the hearing and ruling should have been given by U.S. District Judge Donato himself.
Moreover, Epic Games was unjustly allowed to tell the jurors that Google and Apple (AAPL) are not competitors in the app distribution and in-app payments markets. Interestingly, in a similar Epic Games v/s Apple Play Store lawsuit heard last year, another judge ruled that Apple did not violate antitrust laws. Google also said in the document the judge incorrectly issued an injunction for users and developers worldwide, while it should only have been for Epic Games.
In response, Epic Games said yesterday that Google was basing its claims on “flawed arguments,” which were rejected by the jury last year. Further, the game developer said that the appeal was one of Google’s desperate attempts to avoid compliance with the unanimous decision of jurors. Epic Games is determined to see that Google complies with last year’s ruling for its anticompetitive behavior. The judge’s ruling will force Google to conduct business with competing app stores in its Google Play Store, which Google contends it is not legally required to do.
Google’s Ill-Fate with Ongoing Antitrust Cases
The 9th Circuit said that it will hear the verbal arguments on the case on February 3, 2025, and give a ruling sometime next year. The order, if upheld, will bind Google for three years. Google is engulfed in a sea of lawsuits, and to make matters worse, it has been losing on most of them.
Google is also fighting the Department of Justice (DOJ) over its ruling to sell its web browser Chrome, citing its dominance in the online search market. Google also made its final arguments in the ad tech case, where it is accused of holding a dominant position. The final ruling is expected sometime by the end of 2024, when Google could be forced to sell its Ad Manager platform.
Is Google Stock a Good Buy?
Despite the ongoing noise, Wall Street remains highly optimistic about Alphabet stock’s trajectory. On TipRanks, GOOGL stock commands a Strong Buy consensus rating based on 27 Buys versus seven Hold ratings. Also, the average Alphabet Class A price target of $207.90 implies 22.9% upside potential from current levels. Year-to-date, GOOGL shares have gained 21.5%.
