Shares in Google-owner Alphabet (GOOGL) were flat today as the European Union ruled that it had to share data with other search engines and open up its Android system to rival AI services such as OpenAI.
Alternatives to Gemini
The European Union said Google had to comply with its Digital Markets Act and must start sharing data from January 2027. As such, users would start benefiting from the changes to Android from July 2027.
“Thanks to these measures we hope to see emerging alternatives to Google Search and Google’s AI services, such as Gemini, and that users in the EU can enjoy greater choice of services,” EU tech chief Henna Virkkunen said.
The Commission said Google will open up 11 features on its Android operating system to AI rivals to access key functionalities and better compete with Google’s Gemini AI service.
This would mean that users can activate a rival AI assistant via voice commands, similar to the ‘hey Google’ command, to book a taxi or search for information on places.
Rebalance Playing Field
The Commission said the measures contain robust safeguards to protect users’ privacy and device security, and that Google will only offer the 11 features to rivals who fulfill security and privacy criteria.
The EU decision also requires Google to share the data that it collects to optimize its own search services with OpenAI and other AI chatbots with search functionalities, subject to anonymisation.
The EU said sharing search data would “rebalance the playing field” but Google responded by declaring that the measures “introduce unprecedented risks to user privacy, device security, and national security”.
“Today’s decisions risk undermining vital privacy and security guardrails for millions of Europeans,” Google’s lawyer Kent Walker said. “We have repeatedly offered solutions to safeguard users while satisfying the DMA’s goals, but these rulings discount extensive evidence of user harm.”
The EU has the right to slap fines of up to 10% of a company’s total global turnover for violating the DMA.
It is another prime example of how Europe is using the Digital Markets Act to crack down on U.S. tech titans. This is down to competition concerns, the desire to help continental tech firms and reducing dependence on an increasingly uncertain US/EU relationship under President Trump.
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