Google Races To Overhaul AI Search As EU Threatens Major Fine And Probes Its Use Of Publisher Content: Report

• Google is reportedly adding more in-line links and source explanations to AI Mode.
• New AI tools are being tested with major publishers and expanded globally.
• The company also faces separate pressure over Play Store compliance heading into 2026.

Alphabet Inc.’s Google is reportedly rolling out a major update to its AI-powered search tools as EU scrutiny escalates, with regulators weighing a hefty Play Store fine in early 2026 and examining whether its AI features use publisher content without “appropriate compensation.”

AI Mode Adds More Source Links

Google said AI Mode will soon display more in-line links and short AI-generated descriptions that explain why certain sources are relevant. These explanations will appear above a carousel of cited articles, and additional linked phrases will be embedded within AI responses to give users clearer paths to underlying material, according to a report by The Verge.

The update follows the European Commission’s recent decision to open an antitrust investigation into how Google uses web publisher content and YouTube creator material to train and power AI Overviews and AI Mode. 

The investigation will also look at whether Google uses publisher content for AI features without appropriate compensation and whether publishers effectively lack the ability to opt out without risking reduced visibility in Search.

Pilot Program With News Publishers

Google is testing new AI-driven audience tools with several news outlets, including The Guardian, The Washington Post, the Washington Examiner and the Associated Press. One experiment will show AI-written overviews inside Google News, while another will deliver real-time updates from participating publishers via the Gemini app, the report said. 

The company is also expanding access to its preferred-sources feature for English speakers globally. A related update will highlight articles from outlets users subscribe to and group them inside a dedicated carousel, appearing first in Gemini before reaching AI Overviews and AI Mode.

Google is refreshing Web Guide as well, saying the Search Labs experiment now loads twice as fast and will appear for a broader range of queries.

Play Store Compliance Risks 

The AI investigation adds to Google’s broader regulatory challenges in Europe. The company could face a substantial fine in the first quarter of 2026 if further changes to Google Play do not satisfy EU antitrust rules on fair access for app developers. Google can still reportedly implement adjustments before any penalty is imposed, and the timing may shift.

A Google spokesperson said the company continues to work with the European Commission but warned that additional requirements could raise risks of malware, scams and data theft for Android and Play users, noting that Android is designed to be more open than iOS.

Meanwhile, U.S. officials argue that Europe’s tech regulations single out American firms, a view the EU rejects.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment for Alphabet was ‘bearish’ amid ‘low’ message volume.

Alphabet’s stock has risen 67% so far this year.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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