Alphabet Stock: Regulatory Hurdles Weigh on Tech Giant

Google's parent company Alphabet faces mounting regulatory challenges across global markets, putting pressure on its stock which recently dropped 2% following intervention by Japan's competition authority. The Japanese Fair Trade Commission issued a cease-and-desist order against Google for anti-competitive practices, specifically targeting the company's requirements for Android smartphone manufacturers to pre-install and prominently feature Google apps. Simultaneously, European regulatory tensions are escalating as Germany's Meraki Group filed a complaint with the EU Commission against Google's spam policies, alleging the tech giant uses its market dominance to disadvantage competitors.

Innovation Amid Regulatory Storms

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While navigating these regulatory headwinds, Alphabet continues to advance its technological initiatives. The company recently announced that Gemini users can now generate high-resolution videos from text prompts with Veo 2, available to Premium subscribers. On the infrastructure front, Alphabet demonstrated commitment to its AI strategy with plans to invest over $75 billion in data center expansion. The company also made sustainability moves in Taiwan, partnering with Baseload Capital on geothermal energy to power its growing data center operations, effectively doubling the country's current geothermal capacity with an additional 10 megawatts.