The U.K.’s Competition and Markets Authority (CMA) has concluded its probe into the app stores of Alphabet’s (GOOGL) Google and Apple (AAPL), ahead of the implementation of new digital markets laws. Although the probe is now closed, the tech giants may still encounter scrutiny when the new rules are enacted later this year.
The investigation into Apple’s App Store was launched in 2021, followed by a probe into the Google Play Store in 2022. Importantly, the tech giants were accused of imposing unfair terms for app developers using their respective app stores.
New Rules to Take Center Stage
The U.K.’s new Digital Markets, Competition, and Consumers Act (DMCCA) seeks to combat anti-competitive practices by major online platforms. This legislation will enable the CMA to evaluate competition issues from a global perspective. If Google or Apple are classified as having ‘strategic market status,’ the CMA can examine their practices in both the U.K. and international markets.
Therefore, a primary reason the regulator closed the probe is the belief that Google and Apple’s app store practices can be better addressed under the new legislation.
With this background, let’s see what Wall Street thinks about the two tech giants.
Is Apple a Buy, Sell, or Hold?
Overall, AAPL has a Moderate Buy consensus rating on TipRanks. This is based on 24 Buy, eight Hold, and one Sell recommendations. Analysts’ average price target on Apple stock is $247.43, implying a 9.29% upside potential from current levels. The stock gained 23.1% in the past six months.
What Is the Price Target of GOOGL Stock?
On TipRanks, GOOGL has a Strong Buy consensus rating based on 29 Buys and seven Holds assigned by analysts in the past three months. After a 15.2% gain in share price in the past six months, the analysts’ average price target on Alphabet stock of $205.18 implies 23.71% upside potential.
