The European Union has taken a new step to limit Alphabet Inc.’s (GOOGL) power, with a plan that could reshape both search and AI. The European Commission said it has sent early findings to Google under the Digital Markets Act, a key law aimed at large tech firms.
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The proposal would require Google to share core search data with rivals. This includes ranking, query, click, and view data. The Commission said the goal is to help other firms “optimize their search services and contest Google Search’s position.”
At the same time, the move could open the door for AI firms like OpenAI and Anthropic to access that data. As a result, the case goes beyond search and into the fast-growing AI market.
Meanwhile, GOOGL shares rose 1.26% on Wednesday, closing at $337.12.
A Shift Toward AI Competition
Search data is one of Google’s most valuable assets. It shows what users look for and how they respond. This gives Google a strong edge in both search and AI tools.
However, the EU now wants to lower that edge. By sharing data, rivals could build better search tools and train stronger AI systems. In turn, this could speed up competition in AI, where firms race to improve answers and results.
Still, Google has pushed back. The company said it will “vigorously defend against this overreach,” and warned that the plan “jeopardizes people’s privacy and security.” This signals a likely legal fight if the rules move forward.
More Pressure on Google
The proposal adds to a wider set of EU actions against Google. Regulators are also looking into claims that the company favors its own services in search results. In addition, they are reviewing limits placed on app developers in the Google Play Store.
At the same time, Google faces probes over how it ranks news content. These cases could add to about $11.2 billion in past EU fines tied to antitrust rulings.
Meanwhile, the move has also raised tension with the U.S. government. President Donald Trump has criticized EU tech rules that target large U.S. firms. As a result, this case may add strain to trade ties.
Looking ahead, the European Commission will gather feedback before a final decision is set for July 27. If the rules are adopted, they could change how search data is used across both search and AI markets.
Is Google Stock a Buy, Sell, or Hold?
Turning to the Street, Alphabet boasts a Strong Buy consensus view. Of 30 ratings issued, 25 analysts rate it a Buy, while five analysts rate it a Hold. The average GOOGL stock price target is $385.46, implying a 14.34% upside from the current price.
