Google, owned by Alphabet, is confronting two significant legal battles that could have broad effects on its operations. One case focuses on the Google Play Store, while the other targets the company’s use of artificial intelligence (AI) in search results.
A U.S. appeals court recently denied Google’s request to pause a ruling that requires changes to the Play Store. The case, brought by Epic Games, determined that Google limited competition on Android devices.
Under the court order, Google must allow users to install alternative app stores, open its Play Store catalog to competitors, offer more payment options, and stop paying phone makers to make the Play Store the default app store.
Some changes must be implemented within 30 days, while others have a 10-month deadline. Google has warned that the ruling could threaten user privacy and safety and may appeal to the U.S. Supreme Court.
Separately, media companies, including Penske Media, which owns Billboard, Variety, and Rolling Stone, have sued Google over AI-generated summaries in search results. Penske claims these summaries reduce traffic to its websites and hurt advertising revenue.
The company says AI Overviews appear in about 20% of search results linking to its sites, and online shopping revenue has fallen by more than one-third since late 2024. Google counters that AI summaries provide users with more choice and generate higher-quality clicks.
Together, these cases challenge Google’s control over app distribution and search monetization. The Play Store ruling could reduce app sales revenue, while the AI lawsuit may affect website traffic and advertising income.
Both legal battles are expected to take time to resolve, and investors are closely watching the outcomes.
