Alphabet Faces EU Digital Markets Act Antitrust Investigation

Alphabet, the parent company of Google, is facing significant scrutiny under the European Union's Digital Markets Act (DMA), which aims to curtail the power of major tech companies and foster competition. Six European digital and human rights organizations have filed a complaint alleging Alphabet violates the DMA by making it difficult for users to uninstall pre-installed apps on Android devices, an accusation the company denies. The European Commission has acknowledged the complaint and is investigating, while also issuing preliminary findings against Alphabet for potential breaches related to Google Search and Google Play, focusing on self-preferencing and restrictive app distribution practices. These regulatory challenges pose financial and strategic risks for Alphabet, which has previously faced over €8 billion in EU fines. Despite strong performance in advertising and cloud services, analysts maintain a cautious outlook on Alphabet's stock due to ongoing antitrust pressures and competitive challenges. The situation highlights the ongoing tension between US tech giants and European regulatory frameworks, as Alphabet navigates compliance and market dynamics under the evolving DMA landscape.