Alphabet Faces GDPR’s Largest Fine Amidst Strategic Restructuring and AI Challenges

As of last week, Alphabet Inc. (GOOGL) saw a slight dip of 0.14% in its stock price, marking a 0.48% decline over the past week. Despite this downturn, the company's market value stands strong at $2.967 trillion, with a year-to-date increase of 30.03%. As the company navigates ongoing challenges and regulatory scrutiny, stakeholders remain keenly attentive to Google A's market performance.

Recently, Google found itself in troubled waters with the French data protection authority, CNIL, which imposed a substantial fine of 50 million euros (approximately $56.8 million) for violating the General Data Protection Regulation (GDPR). This fine marks the largest ever imposed by a European regulator under GDPR and represents the first time Google has been penalized under the regulation, which came into effect in May of the previous year. The penalty stems from Google's failure to provide clear, comprehensible information regarding its data consent policies and not sufficiently empowering users to control their information.

In response, a Google spokesperson stated the company's commitment to transparency and high standards of control as it contemplates the next steps. Meanwhile, consumer rights groups from seven European countries have also accused Google of not complying with the GDPR, specifically citing concerns over deceptive practices related to location tracking.

Adding to Google's challenges in Europe, the search giant is also facing internal restructuring issues. According to recent reports, the company terminated the contracts of over 200 contractors responsible for evaluating and improving its AI products. This unexpected move follows closely after similar actions by other tech companies, indicating a broader trend of cost-reduction amidst improving AI capabilities.

Google's decision to cut ties with these evaluators has left many contract workers frustrated, claiming their protests against difficult working conditions and low pay might have contributed to their dismissal. In particular, some workers expressed concerns that their roles in refining AI systems are slowly being overtaken by the demand for automation and AI advancements.

Pushing forward in the competitive AI landscape, Google continues to rely on external companies like GlobalLogic for AI product evaluations. Despite the challenges faced by many in this space, the company's thinning evaluator team remains a critical yet undervalued part of its AI development process.

In other developments, insider trading activities reveal that senior executive Walker John Kent sold 4,731 shares on September 29, 2025. This action is among several recent internal transactions as the company navigates its strategic course amidst a dynamic tech landscape.