Alphabet (GOOGL) shares showed little movement amidst concerns about potential changes to its Google search engine following a 10-month UK investigation. The Competition and Markets Authority (CMA) designated Google as holding a “strategic market position” due to its significant market power in search and advertising, a status that entails no immediate penalties but could lead to consultations on interventions later this year.
The CMA aims to boost competition in digital markets, potentially requiring Google to offer alternatives to its search engine—critical for its revenue. Google highlighted worries over possible price hikes and negative impacts on innovation. The UK’s new Digital Markets Competition Regime will take effect on January 1, 2025, allowing the CMA to enact targeted measures to enhance competition.
Currently, GOOGL holds a Strong Buy consensus from analysts, with a price target of $253.66, suggesting a 5.02% upside.
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