Google Is Ending 2023 With Lost Legal Battles
Portfolio Pulse from Upwallstreet
Alphabet Inc's Google has agreed to pay $700 million to settle antitrust cases, including revamping its app store practices. Google lost a lawsuit to Epic Games, which accused it of operating an illegal monopoly. The settlement requires Google to allow developers to offer direct payment options and make it easier to download apps from sources other than the Play Store. Despite reduced fees for app creators, customers may not see lower prices. The trial revealed Google's preferential treatment to companies like Spotify and Netflix, and highlighted the need for regulation. Google faces further legal challenges regarding its search and digital ad practices.
December 22, 2023 | 5:14 pm
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NEGATIVE IMPACT
Google's settlement and loss in the antitrust lawsuit may lead to increased regulatory scrutiny and changes in its business practices, potentially impacting its revenue from the app store.
The settlement and lawsuit loss are significant events that could lead to a decrease in app store revenue due to the required changes in Google's business practices. The negative publicity and ongoing legal challenges could also impact investor sentiment.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
Alphabet, as Google's parent company, will be directly affected by the legal settlements and the need to alter its app store operations, which could impact its financial performance.
Alphabet will bear the financial burden of the settlements and the operational changes in the app store, which could lead to reduced app store revenue and affect the company's overall financial performance.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
Apple, although not directly affected by Google's legal issues, could face increased regulatory attention as the industry scrutinizes app store practices.
While Apple won its lawsuit against Epic Games and was not directly implicated in Google's case, the industry focus on app store practices could lead to increased scrutiny of Apple's App Store policies.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
Netflix, previously given preferential treatment by Google, is not directly impacted by the lawsuit but the revelations could lead to calls for more equitable treatment across the industry.
Netflix's special treatment by Google is now public knowledge, but the company is not directly affected by the lawsuit's outcome. However, the industry may advocate for more equitable treatment of all app developers.
CONFIDENCE 70
IMPORTANCE 40
RELEVANCE 30
NEUTRAL IMPACT
Spotify, which pays no fees to Google for its own in-app-payment system, may face changes if Google alters its app store policies to be more equitable following the lawsuit.
Spotify's current arrangement with Google could come under review if Google is forced to implement more equitable app store policies as a result of the antitrust lawsuit and settlement.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 40