Alphabet’s Google Loses Ground as EU Steps Up ‘Market Abuse’ Claims

Alphabet’s (GOOGL) Google appears to be losing a long-standing case in the European Union (EU), where it has been accused of using its monopolistic power to stifle competition for its Android Operating System (OS). An advisor to Europe’s highest court concluded against Google’s appeal to overturn the ruling and sided with a lower tribunal’s decision of a reduced fine of 4.124 billion euros.

The case dates back to 2018, when the European Commission alleged that Google used its Android OS to block rivals. Google allegedly pressured smartphone manufacturers to pre-install its Google Search and Chrome browser, along with its Google Play app store, thus killing competition. According to data from Statcounter, the Android OS powers nearly 73% of the world’s smartphones.

Google’s Plea Fails to Impress EU Court Advisor

In a non-binding statement, Advocate-General Juliane Kokott of the Luxembourg-based Court of Justice of the European Union (CJEU) stated, “The legal arguments put forward by Google are ineffective,” and hence should be dismissed. She added that Google’s plea to be compared with rival companies in assessing the situation cannot be sustained, since currently there is no other equally-efficient competitor. The final ruling will be issued later this year by judges who are usually known for following four out of five such non-binding opinions.

Meanwhile, Google is not satisfied with the advisor’s findings. Commenting on the situation, a Google spokesperson stated, “We are disappointed with the Opinion which, if it were followed by the Court, would discourage investment in open platforms and harm Android users, partners and app developers.” Google claims it has created more choice for consumers and app developers, and supports businesses across Europe and around the world.

Unfortunately, the tech giant has also lost another landmark ruling in the U.S., alleging it of dominance in Search and Ad tech businesses. The judge is reviewing remedial measures for both cases, with one of the remedies requiring Google to divest both businesses.

Is GOOGL Stock a Buy Now?

On TipRanks, GOOGL stock has a Strong Buy consensus rating based on 29 Buys and nine Hold ratings. Also, the average Alphabet price target of $199.11 implies 14.9% upside potential from current levels. Year-to-date, GOOGL stock has lost 8.2%.

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