Google Court Ruling Spurs Analyst Opinions — Will The $500B App-Store Industry Hit 'A Wall Of Large Numbers' Or A Regulatory Barrier?
Portfolio Pulse from Benzinga Neuro
A recent court ruling has declared Google's app-store monopoly unlawful, posing challenges to the $500 billion app-store industry. This decision is part of a broader trend of regulatory actions targeting the dominance of Google (NASDAQ:GOOGL) and Apple Inc. (NASDAQ:AAPL) in digital marketplaces. The EU will soon require Apple to allow software downloads outside its App Store, and both companies have been mandated to accept alternative payment systems in South Korea. The U.S. Justice Department is also scrutinizing a deal between Google and Apple. Despite these developments, the financial impact on both companies is still uncertain, with changes expected to unfold over several years.
December 13, 2023 | 3:40 am
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NEGATIVE IMPACT
Apple Inc. faces regulatory challenges that may force changes to its App Store practices, potentially affecting its services revenue growth.
Apple is under regulatory pressure to alter its App Store practices, which could lead to a decline in services revenue. However, the timeline and extent of the impact are uncertain, and Apple may mitigate the effects through compliance strategies.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
Google's app-store monopoly has been ruled unlawful, which could lead to increased regulatory scrutiny and potential changes in their app store operations.
The court ruling against Google's app-store monopoly and the upcoming EU law changes could negatively impact Google's app store revenue and its overall business model. However, the exact financial impact is still unclear, and Google may find ways to comply without significant revenue loss.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80