Alphabet Faces New EU Fine Threats, GOOGL Stock Dip to Start 2026

Alphabet (GOOGL) may confront another significant fine from EU regulators, potentially dampening its stock performance as 2026 begins. Shares are down 25% today but remain up 64% year-to-date, cementing its leadership among U.S. tech giants. The looming penalty stems from alleged non-compliance with EU antitrust rules prohibiting preferential treatment of Google's own services in search results.

EU antitrust authorities accuse Google of favoring platforms like Google Shopping and Google Flights over competitors—a violation of the Digital Markets Act. Despite October adjustments to search results, regulators deem these measures insufficient. The fine, expected to be announced by UK authorities shortly, risks escalating transatlantic tensions over perceived targeting of U.S. tech firms.

Investor attention simultaneously focuses on Alphabet's tensor processing units (TPUs), which analysts speculate could emerge as a major revenue stream. This technological bright spot contrasts sharply with regulatory headwinds threatening the company's European operations.