Alphabet drops over 4% after EU orders Google to open 11 Android features to rivals

Published Jul 17, 02:30 AM UTC

Alphabet (GOOG) shares dropped over 4% on July 16, 2026, erasing gains from Warren Buffett's recent endorsement, after the European Union ordered Google to open 11 Android features to rival AI assistants and share anonymized Search data under the Digital Markets Act. The order compounds concerns over the delayed launch of Gemini 3.5 Pro, Alphabet's next flagship AI model, which was expected in June but is still being refined. The company faces heavy capital spending of $180-190 billion this year, driving an $80 billion equity raise that Berkshire Hathaway helped anchor. Separately, the EU may issue a fine next week in a related investigation. Despite the headwinds, Buffett confirmed his $31 billion stake, though he cautioned about the AI spending race. Wall Street expects Q2 earnings per share of $2.86, with Google Cloud revenue growth a key focus.