Alphabet Dodges Multi-Billion Dollar Blow By Rejecting Google Play Fee Model Change: Epic Lawsuit Documents Reveal
Portfolio Pulse from Rounak Jain
Alphabet Inc. considered changing Google Play's fee model to avoid regulatory scrutiny but decided against it, fearing multi-billion dollar losses. Documents from the Epic Games antitrust lawsuit revealed Project Everest, which assessed alternative billing models. Google feared significant revenue loss with the proposed changes, opting instead for a model allowing developers to handle payments for a reduced fee. The Epic lawsuit also highlighted Google's app store duopoly with Apple Inc., which is under threat due to legal challenges and regulatory scrutiny.
December 24, 2023 | 12:53 pm
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NEUTRAL IMPACT
Alphabet's decision to not change Google Play's fee model may prevent immediate revenue loss but ongoing legal challenges could impact investor sentiment.
While Alphabet's decision avoids a direct revenue hit, the legal challenges and potential regulatory changes could create uncertainty for investors, possibly affecting the stock price in the short term.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 90
NEUTRAL IMPACT
Alphabet's decision to not change Google Play's fee model may prevent immediate revenue loss but ongoing legal challenges could impact investor sentiment.
Similar to GOOG, GOOGL shares may experience short-term volatility due to the legal revelations and the threat to the app store's revenue model, despite avoiding immediate losses.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 90
NEUTRAL IMPACT
Tencent's subsidiary Epic Games' lawsuit against Google could indirectly affect TCEHY's stock if the legal battle alters the app store landscape.
Tencent is not directly involved in the fee model change, but as the parent company of Epic Games, the lawsuit's outcome could have a ripple effect on TCEHY's market perception and future strategic decisions.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50
NEGATIVE IMPACT
Apple's app store duopoly with Google is under threat from legal challenges, which could affect investor confidence and AAPL's stock price.
Although not the primary focus of the lawsuit, Apple's similar app store model could be affected by the outcome of Google's legal challenges, potentially leading to regulatory changes and impacting AAPL's revenue.
CONFIDENCE 75
IMPORTANCE 65
RELEVANCE 70