The European Union has intensified its pressure on Google (GOOGL), setting a strict six-month deadline for the tech giant to dismantle barriers that favor its own AI tools on the Android operating system. EU regulators announced new proceedings under the Digital Markets Act (DMA), a law designed to prevent gatekeepers from locking competitors out of the market.
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This move specifically targets Google’s Gemini AI and its massive search data, with officials aiming to ensure that rival search assistants and search engines can compete on a level playing field.
Commission Mandates Android System Access
The European Commission is primarily concerned with interoperability, the ability of different software systems to work together seamlessly. Under current rules, Google’s Gemini AI enjoys a native advantage on Android, meaning it is deeply integrated into the phone’s hardware and software in ways that competitors like Microsoft’s (MSFT) Copilot or OpenAI’s ChatGPT cannot match.
EU Competition Chief Teresa Ribera explained that these new proceedings are intended to give Google a clear roadmap for compliance. The Commission wants rival AI developers to have the same “free and effective” access to Android features that Google’s own services use. Failure to make these changes within the next six months could result in a formal investigation and massive financial penalties.
Google Resists Search Data Sharing
A second part of the EU’s ultimatum focuses on the data that powers Google Search. The DMA requires Google to share anonymized data, such as what users are searching for and which links they click, with rival search engine providers. Regulators argue that this data is essential for competitors to build better AI models and search tools of their own.
Google counsel Clare Kelly expressed strong concerns about this requirement, arguing that sharing such detailed data could “compromise user privacy, security, and innovation.” The company maintains that Android is already “open by design,” but regulators disagree, suggesting that Google is using its scale to maintain an unfair advantage in the rapidly evolving AI market.
Brussels Threatens Global Sales Fines
This latest move adds to a growing list of legal challenges for Google in Europe. The company is already under fire for allegedly favoring its own shopping and travel services and for restricting app developers on the Play Store. Total EU fines against Google have already reached €9.5 billion, and the new DMA rules allow for even steeper penalties, up to 10% of global annual turnover for a first offense.
In simple terms, the EU wants your Android phone to be just as friendly to other AI tools as it is to Google’s. While Google argues that these changes will make phones less secure, regulators believe that competition is the only way to ensure that AI continues to innovate.
Is Google a Good Stock to Buy?
The stock of Alphabet has a consensus Strong Buy rating among 33 Wall Street analysts. That rating is based on 26 Buy and seven Hold recommendations issued in the last three months. The average 12-month GOOGL price target of $347.70 implies 4.3% upside from current levels.
