Google Wins Delay in Opening Android App Store to Rivals

Google app is seen on a smartphone in this illustration taken, July 13, 2021. (Reuters)
Google app is seen on a smartphone in this illustration taken, July 13, 2021. (Reuters)
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Google Wins Delay in Opening Android App Store to Rivals

Google app is seen on a smartphone in this illustration taken, July 13, 2021. (Reuters)
Google app is seen on a smartphone in this illustration taken, July 13, 2021. (Reuters)

A US judge on Friday let Google delay opening Android-powered smartphones to rival app shops, suspending a November 1 deadline ordered in an antitrust case brought by Fortnite-maker Epic Games.

Google was pleased by federal judge James Donato's decision to "temporarily pause the implementation of dangerous remedies demanded by Epic," a company spokesperson said, as an appeals court considers permanently blocking the order stemming from Epic's argument that the tech titan's Android Play store is an illegal monopoly.

"These remedies threaten Google Play's ability to provide a safe and secure experience and we look forward to continuing to make our case," the spokesperson added.

In response to the ruling, a spokesperson for Epic Games said in an email to AFP that Google's appeal was "meritless," citing the judge's deference to the Ninth Circuit Court of Appeals instead of striking down the order outright.

"The pause... is merely a procedural step," the spokesperson said.

Phones running on the Android operating system have about a 70 percent share of the world's smartphone market.

Google has been hit with a series of recent legal challenges to its dominance.

In August, a different judge found that Google's world-leading search engine was an illegal monopoly.

Google is also facing an antitrust lawsuit in a third federal case in Virginia over its dominance of online advertising.

Under the Epic Games order, for the next three years Google will be prohibited from engaging in several practices that were deemed anticompetitive by the jury in the landmark case.

For instance, the trial found that Google made its Play app store the only method to make payments to third party apps, like Fortnite.

A sizable chunk of app store revenue comes from video games, and Epic Games has long sought to have payments for its mobile games take place outside the Google or Apple app stores that take commissions as high as 30 percent.

Epic mostly lost a similar case against Apple, where a US judge largely ruled in favor of the iPhone-maker.

Apple and Google regularly argue that their app shop commissions are industry standard, and that they pay for benefits such as reach, transaction security and ferreting out malware.



Netflix Rises on Strong Subscriber Growth, Bets on Higher Customer Sign-ups

The Netflix logo is displayed at Netflix corporate offices on September 25, 2023 in Los Angeles, California. (Getty Images/AFP)
The Netflix logo is displayed at Netflix corporate offices on September 25, 2023 in Los Angeles, California. (Getty Images/AFP)
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Netflix Rises on Strong Subscriber Growth, Bets on Higher Customer Sign-ups

The Netflix logo is displayed at Netflix corporate offices on September 25, 2023 in Los Angeles, California. (Getty Images/AFP)
The Netflix logo is displayed at Netflix corporate offices on September 25, 2023 in Los Angeles, California. (Getty Images/AFP)

Netflix shares rose 5.2% in premarket trading on Friday, after the streaming giant topped Wall Street estimates for new subscriber additions by more than 1 million and projected higher customer sign-ups for the December quarter.

Netflix on Thursday said it picked up 5.1 million new streaming subscribers in the third quarter, with its ad-supported service accounting for more than 50% of sign-ups in countries where it was available.

“Netflix is the one thing people can’t live without and its latest results are testament to its lasting appeal,” said Dan Coatsworth, investment analyst at AJ Bell, Reuters reported.

The streaming platform projected its customer additions for the December quarter - traditionally a strong period around the holidays - would outpace the September quarter. The second season of Korean drama "Squid Game" is scheduled for release in late December.

Shares of Walt Disney and Warner Bros Discovery rose marginally.

"Peers in the legacy media space are losing money hand over fist, meaning Netflix can push its advantage in content creation while others can’t stomach allocating more capital," said Matt Britzman, senior equity analyst, Hargreaves Lansdown.

Ads are also in the mix for 2025, and price hikes that have started in some markets have the potential to "squeeze more" from existing subscribers, he said.

At least eight analysts raised their price targets on the stock following results, bringing the median target to $750 from $706.38 according to LSEG data.

But while the customer additions outpaced forecasts, it was below the 8.76 million that Netflix picked up in the year-ago quarter.

The company has been trying to shift investor attention away from sign-ups to metrics including revenue growth and profit margins as the pace of subscriber growth mellows.

So far this year, Netflix's stock has risen about 41.2%, Disney has been up 6.9% while Warner Bros has shed about 31%.