Google Could Face Massive EU Antitrust Fine — Publishers Say Enough

Alphabet’s Google GOOGL -0.42% ▼ is moving closer to a massive antitrust fine in the European Union (EU). European publishers, tech firms, and startups are reportedly pressing EU regulators to conclude a nearly two-year antitrust investigation into Google. The probe focuses on allegations that the company’s search engine favors its own services over competitors. With frustration mounting, these groups are calling for a fast conclusion and a swift fine.

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For context, the EU opened its investigation on March 25, 2024, under the EU Digital Markets Act (DMA). Nearly two years later, the probe is still ongoing, as regulators continue to examine whether Google has unfairly favored its own services in search results.

Key Details of Google’s EU Antitrust Trouble

In a letter to EU leaders obtained by Reuters, the European Publishers Council urged regulators to wrap up the Google investigation by next week. The council members include Axel Springer, News Corp NWSA +0.51% ▲ , and Condé Nast—along with the European Magazine Media Association, the European Tech Alliance, EU Travel Tech, and other groups.

The letter further stated that the “EU’s credibility is at stake, and sustained pressure to weaken the DMA must not succeed.” The groups also warned that delays are hurting European companies, reducing profitability, limiting investment, and pushing some toward financial distress or even bankruptcy due to Alphabet’s business practices.

Breaking Down Google’s Regulatory Risks

According to TipRanks’ Risk Analysis Tool, Google’s legal and regulatory risks make up 18% of its total risk profile, slightly higher than the sector average of 17.4%. This reflects ongoing scrutiny from regulators worldwide, including the EU’s nearly two-year antitrust investigation and potential fines.

While Google remains a highly profitable and dominant company, ongoing legal and regulatory challenges could create investor uncertainty and pressure short-term profits. Thanks to its size and cash reserves, the company can absorb the impact, but the bigger effects may come from changes to its business practices and long-term shifts in investor sentiment.

Is Google Stock a Buy, Sell, or Hold?

Overall, Wall Street analysts have a Strong Buy consensus rating on GOOGL stock based on 26 Buys and six Holds assigned in the past three months. The average GOOGL price target of $376.57 per share implies a 25% upside potential.

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