Alphabet's Gemini 3.5 Pro Delay Triggers Stock Drop and EU Antitrust Actions

Alphabet announced that its Gemini 3.5 Pro model, the upgraded version of the Gemini 3.5 Flash AI, has missed its planned June launch. Bloomberg reported the delay as a result of ongoing testing to improve coding capabilities, and the setback has contributed to a roughly 15 % decline in Alphabet’s share price, closing at $346.77.

The delay fuels market concerns that rivals OpenAI and Anthropic may be outpacing Google in AI coding performance. Analysts note that the stock’s recent pullback could test a support level near $338, while investors such as Wealthfront Advisers have increased their Alphabet holdings, now worth about $180 million.

At the same time, the EU Commission is preparing new enforcement steps under the Digital Markets Act. The measures would require Google to allow competing chatbot services on Android devices and to share anonymised search‑result data with rivals, with possible fines of up to 10 % of Alphabet’s global revenue.

Separately, Google expanded its AI‑healthcare programme in India through a partnership with the All India Institute of Medical Sciences (AIIMS) to develop AI models for leprosy and reproductive health, and to release open‑source tools for the country’s digital public‑health ecosystem.