Alphabet Shares Approach Record Highs Amid EU Antitrust Scrutiny

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Alphabet Inc. is closing in on new all-time highs in the stock market, propelled by the formidable performance of its cloud computing division. This upward trajectory persists even as the European Commission launched a comprehensive antitrust investigation against the technology conglomerate on Tuesday. The probe centers on allegations that the company is leveraging its market dominance in artificial intelligence to the detriment of publishers and content creators.

Investors appear largely undeterred by the gathering legal storm, focusing instead on the company's robust fundamental performance. The share price, currently at 273.75 euros, hovers just below its 52-week peak. This positioning is supported by a year-to-date surge of more than 48%.

The foundation for this market optimism is clearly visible in the latest financial results. Third-quarter revenue surpassed the $100 billion threshold for the first time in the company's history. The cloud unit stands out as a primary growth engine, with its backlog skyrocketing by 82% to $155 billion. This explosive increase highlights the intense market demand for AI infrastructure and computing services.

EU Targets Core of AI Ambitions

The Brussels-led investigation strikes at the heart of Google's strategic future. Regulators are examining whether the company has used content from publishers and YouTube creators to train its AI models without offering fair compensation. A particular point of contention is the "AI Overviews" feature, which provides synthesized information directly within search results, potentially reducing user clicks to original source websites.

The operational impact on website operators is already becoming evident, with data indicating significant declines in click-through rates as Google retains more user traffic within its own ecosystem. Should competition authorities establish an abuse of Alphabet's dominant market position, the company could face fines amounting to up to ten percent of its global annual turnover. The regulatory pressure is compounded by potential penalties related to the Play Store dispute, which could come due as early as the first quarter of 2026.

In response to mounting regulatory scrutiny, Alphabet has initiated pilot projects aimed at directly compensating media houses, such as Germany's Spiegel group. The future direction of the stock will likely hinge on whether these financial concessions satisfy competition watchdogs or if the outcome necessitates more profound structural changes to the Google Search platform.