Alphabet, the parent company of Google, experienced its most significant share price drop since October on Wednesday, plummeting 7.5% after Apple announced a historic decline in Safari search and hinted at a strategic shift towards AI-powered competitors.
This development could signal the beginning of the end for Google's longstanding dominance, as reported by .
The stock's dramatic fall on Wednesday, which wiped approximately $150bn off the tech giant's market value, came after Apple's chief, Eddy Cue, disclosed that the company is "actively looking at" integrating AI search providers such as OpenAI or Anthropic into its Safari browser.
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This change could disrupt the $20bn per year agreement that has made Google the default search engine on all Apple devices – a crucial component of Google's advertising business.
"Fresh signs [have] emerged that Google search might finally be feeling the heat", commented Matt Britzman, equity analyst at Hargreaves Lansdown.
"Apple revealed that search volumes through Safari dropped in April – the first time that's ever happened – and hinted it may bring AI powered search to its browser. Despite solid growth last quarter, it's a fresh signal that Google's dominance could be under real pressure."
During his testimony in the ongoing US antitrust case against Google, Cue explained how generative AI is starting to shape user behaviour.
"There's enough money now, enough large players, that I don't see how it doesn't happen", he said regarding the switch to AI powered search.
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However, Britzman urged for a measured response, stating: "The 7.5 per cent selloff feels like an overreaction for a stock already trading at a discounted multiple, especially since search revenue hasn't missed a beat, even with the rise of ChatGPT."
He added: "It's clear Alphabet's role as the internet's gatekeeper is starting to fade, but it still has a big opportunity to lead in a larger AI-driven web."
Meanwhile, Google is under the microscope of 海角视频 regulators.
Earlier this year, in January, the Competition and Markets Authority (CMA) initiated a formal investigation under its new 'strategic market status' framework to probe whether Google's dominance is suppressing competition.
In the 海角视频, a staggering 90 per cent of our search traffic goes through Google – a fact that prompted the CMA to evaluate if consumers and advertisers are getting a fair deal, and whether newcomers in the AI sector could help level the playing field.
With regulatory bodies in both the US and 海角视频 intensifying their focus on the search behemoth, and Apple announcing its strategic shift away from the brand, it seems Google's reign may be under threat.