Almost $50 billion was wiped from the value of Alphabet Inc (NASDAQ:GOOG) after a federal judge ordered the Google parent company to open its Android operating system to competition, allowing rivals to create their own app marketplaces and payment systems.
This ruling follows a successful lawsuit by Epic Games, the maker of Fortnite, which accused Google of stifling competition and charging excessive fees in its Play Store.
US District Judge James Donato issued an injunction banning Google from paying developers for exclusivity on the Play Store and preventing customers from using third-party billing systems.
Google must also stop revenue-sharing deals with manufacturers like Samsung and LG that promote the Play Store. The injunction, effective from November 1 for three years, forces Google to give competitors access to its app library.
After hours, the stock fell 2.4% to $164.39.