Google Slapped with Monopoly Lawsuit by App Store Rival Aptoide — Another Antitrust Headache

Tech giant Alphabet’s (GOOGL) Google is facing yet another antitrust challenge, as Lisbon-based Aptoide has filed a lawsuit accusing the company of monopolizing Android app distribution and billing. The case could increase regulatory pressure on Google in the months ahead.

For context, Aptoide is an independent app store platform that serves as an alternative to Google Play for Android users. It allows developers to distribute apps more freely, often with fewer restrictions on payments and downloads. The company also claims to be the world’s third-largest Android app store.

‘Anticompetitive Chokehold’

Aptoide argues that Google’s control over the Android ecosystem creates an “anticompetitive chokehold” that prevents smaller app stores from competing on pricing and policies. The lawsuit, filed in San Francisco federal court, seeks to block these alleged practices and demands triple damages.

This isn’t the first clash between the two, as Aptoide previously filed a complaint with European Union regulators back in 2014. It says its platform provides lower commissions for developers and lower costs for users, but claims Google’s ecosystem steers developers toward Google Play and restricts rivals from accessing key content.

Google’s Growing Regulatory Risks

This latest lawsuit adds to mounting regulatory pressure on Google. The company recently settled a long-running antitrust case with Epic Games, the maker of Fortnite, agreeing to make changes to its Android and app store policies after a court found it had unfairly limited competition.

Regulatory pressure isn’t just about app stores. Last August, a judge ruled that Google’s search business is an illegal monopoly and said it must share some data with rivals. But regulators did not go as far as forcing big changes like splitting off Android or Chrome, and the case is still being appealed.

Aptoide’s lawsuit adds to the wider debate over how much control Big Tech has, and whether that power is unfair to smaller players. The outcome could decide how much control Google keeps over the Android app market going forward.

According to TipRanks’ Risk Analysis Tool, Google’s legal and regulatory risks make up 17.9% of its total risk profile, slightly higher than the sector average of 17%.

Is Google Stock a Buy, Sell, or Hold?

Google is still highly profitable and dominant, but ongoing legal and regulatory issues could create uncertainty for investors and weigh on near-term profits. While the company has the size and cash to handle the impact, the bigger risk may come from changes to its business model and shifts in long-term investor sentiment.

Overall, Wall Street analysts have a Strong Buy consensus rating on GOOGL stock based on 25 Buys and five Holds assigned in the past three months. The average GOOGL price target of $385.46 per share implies a 16% upside potential.