This article first appeared on GuruFocus.
Alphabet (GOOGL, Financials) is taking European regulators to court over rules that could give Google’s AI and search rivals access to some of its biggest competitive advantages. Google filed challenges with the EU’s General Court on Monday against two orders issued under the Digital Markets Act.
One requires Google to give competing AI assistants access to Android features available to its own Gemini AI. That could allow rival assistants to respond to voice commands, interact with other apps and perform tasks on a user’s behalf.
The other requires Google to provide eligible competing search engines with anonymized ranking, query, click and view data collected through Google Search.
Google argues the requirements could weaken privacy and security protections. The company says the search-data rules could expose sensitive queries without sufficient anonymization, while the Android requirements could weaken device security.
The European Commission disputes that argument, saying the measures include safeguards designed to protect user privacy, device integrity and security.
The dispute matters because Android and Google’s enormous pool of search data are difficult advantages for competitors to replicate. Giving rivals greater access could make it easier for alternative AI assistants and search engines to improve their products and compete with Gemini and Google Search.
The changes are scheduled to take effect next year, although Google’s legal challenge adds another layer of uncertainty. For Alphabet investors, the case is about more than another European regulatory fight. It could help determine how much of Google’s search and Android infrastructure the company must open to the AI competitors trying to challenge its core businesses.