Alphabet Faces EU DMA Scrutiny While Gemini Powers Apple Siri

Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St.

• The European Commission has opened formal compliance proceedings against Google under the Digital Markets Act to review how it treats rival AI and search services.

• At the same time, Google has agreed with Apple to integrate its Gemini AI model as the default intelligence behind Siri.

• These developments arrive as Alphabet (NasdaqGS:GOOGL) continues to refine its role in global search, mobile ecosystems, and AI platforms.

For investors watching Alphabet at a share price of $334.55, the combination of regulatory pressure in Europe and deeper integration into Apple’s ecosystem is an important backdrop. The stock shows returns of 3.9% over the past week, 6.7% over the past month, 6.2% year to date, and 72.0% over the past year, alongside substantial multi year gains over 3 and 5 years. This context helps frame how significant any shifts in search access rules or AI distribution could be for the business.

Looking ahead, you may want to watch how the DMA proceedings address issues such as default settings, data access, and treatment of third party AI services, since those topics connect directly to Alphabet’s core profit engines. The Apple Gemini deal also raises questions about how value and control are shared across major platforms, which could influence how investors think about Alphabet’s position in mobile and AI over time.

Stay updated on the most important news stories for Alphabet by adding it to your watchlist or portfolio. Alternatively, explore our Community to discover new perspectives on Alphabet.

Is Alphabet financially strong enough to weather the next crisis?

The EU’s Digital Markets Act proceedings go to the heart of how Alphabet monetizes Android and Google Search, because equal access requirements for rival search and AI assistants could reduce the benefit of default status and exclusive data use, while potential fines of up to 10% of global turnover underline the financial stakes. Set against that, the Gemini integration into Siri puts Alphabet’s AI models in front of hundreds of millions of Apple users, which could support higher usage of Gemini-powered services even as regulators push for more open AI and search competition versus Microsoft, Meta and others.

The DMA scrutiny directly touches on themes in existing Alphabet narratives, particularly whether AI is a sustaining technology for Search and how regulation might affect its large user base. At the same time, Apple’s decision to plug Gemini into Siri lines up with the view that Alphabet’s AI and cloud capabilities are being woven across major platforms, which investors following longer term AI and cloud theses have been watching closely.

• ⚠️ Regulatory risk that stricter DMA enforcement leads to product changes on Android and Search, or financial penalties, that weigh on profitability.

• ⚠️ Competitive risk if mandated data sharing and interoperability make it easier for rivals such as Microsoft’s Bing or OpenAI powered services to close the gap in search and AI assistants.

• 🎁 Access upside from Apple’s Siri integration, which could increase exposure to high engagement iOS users and support broader adoption of Gemini powered features.

• 🎁 Ecosystem benefit if wider use of Gemini across Android, iOS and cloud customers reinforces Alphabet’s position as a key AI and data center provider versus other large platforms.

From here, the key things to track are how Brussels specifies DMA compliance over the next six months, any product or default setting tweaks Google makes on Android and Search in Europe, and early signs of how deeply Apple builds Gemini into Siri and other services. If you want a fuller sense of how this fits into the longer term story for Alphabet, check out the community narratives on its dedicated page at Alphabet narratives contributed by other investors.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include GOOGL.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com