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Epic Victory: Judge Rules Google Must Open Android to Competing App Stores

Tech brief - 5-minute tech market update.

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TECH BRIEF

A final ruling by Judge James Donato in Epic v. Google has declared Google's Android app store an illegal monopoly, mandating it to open the Google Play app store for three years to rival third-party app stores, barring individual developer opt-outs. The court order also prevents Google from engaging in declared anticompetitive behaviour. A likely appeal from Google is expected.

Google has announced its decision to appeal the court's ruling in its ongoing legal dispute with Epic Games, which has ordered changes to Android and Google Play. Google argues that these changes will endanger consumer privacy and security, make app promotion more difficult for developers, and reduce device competition. The tech giant is also challenging the court's finding that Android is a separate market, arguing that Android and iOS directly compete. Google maintains that Android is an open platform offering multiple choices for app distribution, and that these judicially ordered changes will disadvantage its competition with Apple's iOS.

Apple Inc. is considering a shift from its traditional yearly refresh cycle, potentially releasing new products more frequently. The proposed fluid release approach could reduce delays and boost the company's ability to innovate. The tech giant has been finding it difficult to update all its diverse range of products, including iPhones, iPads, Macs, and AirPods, annually in a timely and efficient manner. Altering the release cycle could also help Apple mitigate some software issues where some features had to be delayed due to the fixed timeline.

Nvidia and Super Micro Computer shares saw a notable surge on Monday, following Super Micro's announcement of shipping over 100,000 GPUs per quarter. This news boosted Nvidia's share value by 4%, hitting roughly $130 per share, its highest level since late-August. At the same time, Super Micro's share value climbed about 18%. The companies' market valuations consequently increased by $117 billion and $4 billion, respectively. This development was bolstered by Nvidia's booming demand for its next-gen AI chips.

Google's monopoly on the $300 billion search ad business is facing fierce competition. TikTok now allows brands to target ads based on user search queries. AI startup Perplexity, backed by Jeff Bezos, plans to introduce its own search ads. Concurrently, Amazon's rise in the sector sees Google's share expected to drop below 50% for the first time in over a decade, according to eMarketer. This shift could provide more viable alternatives to Google for advertisers who are keen on increased competition.

The European Court of Justice mandates Meta to limit its use of personal data for personalized advertisements. This verdict arises from a complaint by privacy activist Max Schrems, alleging that Facebook utilized data regarding his sexual orientation for targeted ads. Meta stated it does not deploy specially categorized data for personalized ads.

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