On Monday, a federal appeals court in San Francisco showed skepticism toward Alphabet Inc.'s GOOG GOOGL efforts to overturn a jury verdict in favor of Fortine-maker Epic Games.
What Happened: The jury had sided with Epic in 2023, accusing Google of imposing restrictive policies on its Google Play Store. Epic alleged that Google made payments to phone manufacturers and app developers to ensure exclusivity.
However, Google argued that Epic’s similar case against Apple Inc. AAPL was dismissed, suggesting the same should apply here.
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U.S. Circuit Judge Gabriel P. Sanchez noted that competition with Apple does not justify Google’s monopolistic practices. Circuit Judges Danielle J. Forrest and Margaret McKeown pointed out differences between the Android and Apple ecosystems, challenging Google’s argument, reported Bloomberg.
Why It Matters: Google is seeking to overturn an order by U.S. District Judge James Donato, which mandates lifting restrictions on developers.
The injunction is currently on hold pending appeal. The U.S. Justice Department supports Donato’s ruling, highlighting the need to maintain competition in the market.
Price Action: At the time of writing, Alphabet's Class A shares had risen 1.15% in after-hours trading, while Class C shares were up 1.17%. Earlier on Monday, Class A shares closed down 1.37% at $201.23, and Class C shares declined 1.44% to $202.64, according to Benzinga Pro data.
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