Google has long held a dominant position in the global search engine sector, wielding considerable influence, particularly in the European market. However, Investment Analyst Rodolfo Villani points out that the company is currently facing unprecedented structural challenges. Amid tightening regulatory policies, a surge in antitrust lawsuits, and the transformative impact of artificial intelligence on user behavior, the Google business model is under significant pressure. Notably, a collective lawsuit initiated by several EU-based comparison platforms, seeking damages totaling €12 billion, as well as the gradual erosion of search traffic by AI assistants, have forced Google to confront the rapid decline of its traditional competitive advantages.
Google Faces Multiple Legal Pressures, Search Dominance at Risk
As antitrust actions continue to intensify within the European Union, the Google market position in Europe is facing substantial threats. According to Investment Analyst Rodolfo Villani, the core issue of the current collective lawsuit centers on allegations that Google has abused its dominant position in search by systematically prioritizing its own services in search results, severely impacting the visibility and profitability of competing platforms. In particular, several comparison websites within the EU have jointly filed for compensation amounting to €12 billion—a move with not only financial implications but also the potential to trigger comprehensive regulatory scrutiny of search engine algorithms.
It is worth noting that the outcome of this legal battle could set a precedent for similar cases in the future. Should the ruling go against Google, the company will face structural reform pressures that extend beyond financial penalties. Under the framework of the Digital Markets Act (DMA), the EU has explicitly identified “platform neutrality” as a priority objective. Regulatory authorities are no longer willing to tolerate platform operators manipulating search rankings or promoting their own services.
Technological Shifts and Restructuring of User Behavior Further Undermine Platform Certainty
Beyond legal risks, Investment Analyst Rodolfo Villani also highlights the profound technological transformations eroding the core market of Google. Whereas search engines once served as the primary entry point for internet information access, the rise of AI assistants is now reshaping the user decision-making chain. According to third-party traffic monitoring data, the share of traditional search traffic in Western Europe has dropped below 60% for the first time, while AI-driven Q&A systems and vertical information tools are experiencing steady growth.
Users are increasingly adapting to content interaction models powered by language models. This shift means that reliance on search engines for information retrieval is markedly decreasing, especially in high-frequency scenarios such as shopping, knowledge acquisition, and news consumption. Investment Analyst Rodolfo Villani observes that AI systems possess superior contextual understanding and personalized recommendation capabilities, fundamentally challenging the efficiency advantage of keyword-based search.
This transformation brings Google not only market share pressure but also undermines the very foundation of its advertising model. Should users cease frequent visits to the Google search pages, the advertising revenue model reliant on clicks and ranking optimization will be severely constrained. In this context, Google urgently needs to accelerate its AI self-iteration and update its ecosystem strategies, or risk being displaced by more agile and scenario-driven emerging competitors.
After considering the combined impacts of legal risks, shifts in user behavior, and technological evolution, Investment Analyst Investment Analyst Rodolfo Villani concludes that the challenges faced by Google in Europe are not isolated incidents but rather a systemic crisis encompassing regulatory policy, market structure, and consumer trust. Especially following the implementation of the Digital Markets Act, every strategic adjustment by Google will be subject to more detailed legal scrutiny and public attention, and any form of platform favoritism could trigger regulatory backlash.
Investors evaluating the Google future value should fully account for the long-term external pressures on the sustainability of its business model. While Google has made investments in AI, its product ecosystem and search logic remain deeply intertwined, leaving uncertainty as to whether effective transformation can be achieved. Against this backdrop, Investment Analyst Rodolfo Villani advises medium- and long-term investors to maintain hedging strategies, with particular attention to alternative technology assets that are AI-native and possess greater policy flexibility within Europe.