Google Dealt A Blow In $2.6B EU Antitrust Fine As Court Advisor Suggests Dismissing Appeal
Portfolio Pulse from Rounak Jain
Alphabet Inc.'s Google faces a setback in its attempt to overturn a $2.6 billion EU antitrust fine as EU Court of Justice Advocate General suggests dismissing the appeal. The fine was originally imposed in 2017 for favoring its own shopping services, and Google has been fined a total of $9.5 billion by the EU between 2017 and 2019 for various antitrust violations. Google is reviewing the opinion and continues to invest in its remedy, while the European Commission has initiated a new investigation into Google's digital advertising dominance.
January 11, 2024 | 11:54 am
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NEGATIVE IMPACT
Google's parent company Alphabet Inc. may face negative investor sentiment due to the recommendation to dismiss its appeal against the EU's $2.6 billion antitrust fine, potentially affecting its stock price.
The recommendation by the EU Court's Advocate General to dismiss Google's appeal is a significant legal development that could uphold the substantial fine and reinforce the EU's strict regulatory stance. This could lead to negative investor sentiment due to potential financial impact and ongoing legal challenges, which may result in a short-term decline in Alphabet Inc.'s stock price.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 100
NEGATIVE IMPACT
Alphabet Inc.'s Class A shares, traded under GOOGL, could experience a similar negative impact as its Class C shares (GOOG) due to the EU Court's recommendation against Google's appeal of the antitrust fine.
As with GOOG, the Class A shares of Alphabet Inc. (GOOGL) are likely to be impacted in the same manner due to the negative news regarding the EU antitrust fine. The legal recommendation against Google's appeal could lead to investor concern over financial and reputational implications, potentially causing a short-term drop in the stock price of GOOGL.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 100