This article first appeared on GuruFocus.
Pressure is building again around Alphabet Inc. (NASDAQ:GOOG), and this time the focus is narrowing on how AI is embedded across Android. European Union regulators have outlined a fresh set of proposals that could begin to reshape the competitive landscape, particularly around how third-party AI services access core system functionality. While the move stops short of a formal investigation, it may signal a more assertive phase of enforcement if the company does not move toward compliance.
At the center of the discussion, the European Commission is pushing for changes that would require Google to ensure competing AI services can effectively interact with Android applications and execute tasks on users’ devices. The proposal directly addresses the advantage currently held by Gemini, which integrates across key Android features, including app communication and voice activation. Regulators are now seeking to extend that same level of access to rivals, a shift that could broaden user choice across AI services. EU competition chief Teresa Ribera indicated the measures are designed to expand options for users, while regulators are also gathering industry feedback before determining next steps.
Google has responded critically, arguing that the proposed intervention could increase costs while potentially undermining privacy and security protections for users. The measures fall under the EU’s Digital Markets Act, which has already drawn criticism from Donald Trump for targeting American technology firms. So far, enforcement has remained relatively measured, with fines issued to Apple Inc. (NASDAQ:AAPL) and Meta Platforms Inc. (NASDAQ:META), but the risk of escalation remains. If Google does not align with the latest guidance, regulators could move toward a formal probe, potentially adding to the nearly 9.5 billion in fines the company has accumulated in past cases.
