Alphabet (GOOGL)'s Google Might See First Fine Under Landmark New EU tech Rules, Reports Reuters

Alphabet Inc. (NASDAQ:GOOGL) is one of the Best WallStreetBets Stocks to Invest In. On September 25 (updated as of September 26), Reuters reported that Alphabet Inc. (NASDAQ:GOOGL)’s Google might see its first fine under landmark new EU tech rules over the coming months, and the European Commission has been drafting the decision. The Commission fined Google 2.95-billion-euro ($3.45 billion) earlier this month.

Reuters also highlighted that the looming new fine is associated with the charges brought in March that Google favoured its vertical search engines, including Google Shopping, Google Flights, and Google Hotels, over rivals. Notably, the new case against Google was brought under the EU’s Digital Markets Act. This Act explains the dos and don’ts for tech companies and was entered into force in 2023.

Notably, Alphabet Inc. (NASDAQ:GOOGL)’s Google will be the third US tech giant to be fined under the Act after penalties were given to Apple and Meta Platforms earlier this year, added Reuters. Alphabet Inc. (NASDAQ:GOOGL)’s Google can still avert a fine if it brings an improved proposal. SaltLight Capital, an investment management company, released its Q2 2025 investor letter. Here is what the fund said:

“To illustrate our approach to navigating these uncertainties, we turn to our recent investment in Alphabet Inc. (NASDAQ:GOOGL), which exemplifies balancing innovation risks with established strengths.

Innovator’s Dilemma: Google is grappling with an Innovator’s Dilemma as it protects its $200 billion search business from a significant technological shift. To put it plainly, Google Search’s primary purpose is to act as a ‘match-maker’, guiding users to the best source for their query on the open web. However, artificial intelligence is changing this role, with AI handling much of the searching, synthesis, and answering for the user, reducing the need to visit destination websites to gather information. A natural tension is emerging.

Humans naturally gravitate towards the path of least resistance, increasingly depending on AI to undertake cognitive tasks for them. This development poses challenges for content providers and for Google itself, which derives advertising revenue from these interactions…” (Click here to read the full text)

While we acknowledge the potential of GOOGL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now

Disclosure: None. This article is originally published at Insider Monkey.