EU orders Google to open Android to AI rivals in 11 areas

The European Commission ordered Alphabet Inc.'s Google to grant OpenAI and other artificial intelligence competitors access to 11 Android features, escalating its enforcement of the Digital Markets Act to prevent the tech giant from leveraging its mobile dominance in the AI race.

The European Commission ordered Alphabet Inc.'s Google to open 11 Android features to AI rivals and share anonymized user data, escalating antitrust enforcement under the Digital Markets Act to prevent the tech giant from leveraging its mobile dominance in the artificial intelligence race.

"This ensures that emerging AI services can compete on a level playing field, giving EU users real choice," said Henna Virkkunen, EU tech chief at the European Commission, in a statement.

Google must provide OpenAI and other AI competitors access to Android functionalities that power its own AI assistant, including search integration and voice-command features. The company must also share anonymized data with qualifying rivals, subject to privacy and security criteria. The decision comes six months after the Commission opened specification proceedings to help Google comply with the DMA, which took full effect in March 2024.

The ruling threatens Google's ability to use its roughly 3 billion active Android devices worldwide as a distribution advantage for its Gemini AI platform. Noncompliance carries fines of as much as 10 percent of Alphabet's annual global revenue — potentially exceeding $30 billion based on the company's 2025 revenue of about $350 billion.

DMA Enforcement Intensifies as AI Competition Heats Up

The European Commission designated Google as a "gatekeeper" under the DMA in September 2023, subjecting it to strict obligations on how it operates its core platform services. Wednesday's decision marks the first time the regulator has specifically targeted how a gatekeeper integrates AI features into its mobile operating system, setting a precedent for how the DMA applies to rapidly evolving AI markets.

Android powers about 70 percent of smartphones in the European Union, according to market research firm Counterpoint. That dominance gives Google's Gemini AI assistant a built-in distribution channel that rivals such as OpenAI's ChatGPT and Anthropic's Claude lack on mobile devices. By forcing Google to open 11 specific Android features — including notification services, search widgets, and voice-interaction capabilities — the Commission aims to eliminate that structural advantage.

The order also requires Google to share anonymized data that could help rivals improve their AI models. The Commission said data-sharing would be subject to "strict privacy and security criteria" that rivals must meet before gaining access, addressing Google's concerns about user data protection.

Google Faces Multifront Regulatory Pressure

Wednesday's ruling adds to a growing list of regulatory challenges for Google across jurisdictions. In the United States, a federal judge in October 2024 issued a permanent injunction requiring Google to allow alternative app stores on Android devices, following the company's loss in an antitrust case brought by Epic Games. Google confirmed this week it will begin distributing third-party app stores through Google Play starting July 22.

Separately, a group of book publishers filed a copyright lawsuit against Google on July 11, alleging the company unlawfully used copyrighted materials to train its AI models. That case, pending in federal court, could further constrain how Google develops its AI systems.

The EU's DMA has already produced significant penalties against Big Tech. The Commission fined Apple €1.8 billion ($2 billion) in March 2024 for anti-steering practices in its App Store, and it opened noncompliance investigations into Apple and Meta Platforms Inc. in June 2024. Google itself faces an ongoing investigation into whether its search practices comply with the DMA.

For investors, the EU ruling introduces a new variable into Alphabet's AI monetization strategy. Google has invested heavily in Gemini, its flagship AI model, and has integrated it across Search, Cloud, and Android. If rivals gain equal access to Android's distribution layer, Google may need to compete on AI quality alone rather than leveraging its mobile ecosystem — potentially compressing returns on its AI capital expenditure, which totaled $75 billion in 2025 according to company filings.

The Commission said Google must submit a compliance plan within 60 days detailing how it will implement the changes. Virkkunen said the regulator expects "alternative AI services to emerge and EU users to benefit from increased choice" as a result of the order.

This article is for informational purposes only and does not constitute investment advice.