Tech titan Google (GOOGL) is facing growing pressure from the European Union to modify its Android operating system to give competing AI tools more access. Indeed, regulators are concerned that Google is giving its own AI, Gemini, an advantage over rivals like OpenAI’s ChatGPT and Anthropic’s Claude. As a result, EU officials are preparing to outline what Google must do to make sure that these competitors have equal access.
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Notably, this move is part of the EU’s Digital Markets Act, which is designed to limit the power of large tech companies. Although this is not yet a formal investigation, it is meant to push Google to change how Android works. More specifically, regulators want rival AI tools to have access to important features like voice activation, search tools, and integration with other apps, similar to what Gemini already has.
Unsurprisingly, Google has pushed back on these plans. The company says that opening up its system too much could put user privacy, security, and innovation at risk. Nevertheless, the EU could take further steps if Google does not comply, which could include launching a formal investigation that could lead to fines. It is worth noting that Google has been fined nearly €9.5 billion by the EU in the past for issues related to its market dominance.
Are GOOGL Shares a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on GOOGL stock based on 26 Buys and five Holds assigned in the past three months. Furthermore, the average GOOGL price target of $387.68 per share implies 14.4% upside potential.
