EU Orders Google to Open Android and Share Search Data with AI Rivals Under DMA

European Union regulators have ordered Alphabet's Google to grant artificial intelligence and search engine rivals greater access to its core services, a significant move under the Digital Markets Act (DMA) aimed at curbing the tech giant's market power. The European Commission on Tuesday detailed the requirements, which compel Google to open parts of its Android operating system and share valuable search data.

Mandated Changes for AI and Search

The decision, which follows a six-month specification proceeding, imposes two primary obligations on Google to foster competition against its dominant services like Google Search and the Gemini AI assistant.

• Android Accessibility: Google must open 11 features on its Android operating system to AI competitors. This will allow users to activate rival AI assistants through voice commands, similar to the 'hey Google' function. These changes are scheduled to take effect from July 2027 with the next iteration of Android.
• Search Data Sharing: The company is required to share anonymized data that it collects to optimize its own search services with rivals like OpenAI and other AI chatbots. This measure, which includes a formula for calculating the price of the data, is set to be implemented from January 2027.

The Commission stated that Google can first assess whether rivals pose cybersecurity or data protection risks before granting access and will only offer the features to competitors who meet specific security and privacy criteria.

Market Impact and Google's Response

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For investors, the ruling underscores the persistent regulatory headwinds facing Alphabet in Europe. The measures are explicitly designed to lower barriers to entry and could empower competitors in the lucrative AI and search markets, potentially altering the competitive landscape.

Google reiterated its criticism of the EU-mandated changes. "Today’s decisions risk undermining vital privacy and security guardrails for millions of Europeans," the company's lawyer, Kent Walker, said in a statement. He added that Google had offered alternative solutions but that the rulings "discount extensive evidence of user harm."

Regulatory Context

The requirements are part of the EU's broader enforcement of the Digital Markets Act, a landmark law intended to ensure fairness and contestability in digital markets. The Commission's goal is to stimulate innovation and provide consumers with more options.

"Thanks to these measures we hope to see emerging alternatives to Google Search and Google’s AI services, such as Gemini, and that users in the EU can enjoy greater choice of services," EU tech chief Henna Virkkunen said in a statement.