What: The EU is urging Google to allow third-party search engines access to its data to promote competition and reshape digital advertising in retail. 

Why it is important: Increased data access may force retailers to rethink digital marketing and personalisation, aligning with the shift toward AI-powered commerce.

The European Union’s recent directive for Google to provide third-party search engines with access to its data marks a significant turning point for the retail sector. By challenging Google’s control over search data, the EU aims to foster greater competition in digital advertising, which could have far-reaching consequences for retailers’ marketing strategies. As AI-driven personalisation and automation become central to retail, the ability to access and leverage consumer data is increasingly vital. Retailers may need to adapt quickly, re-evaluating how they target and engage customers online, especially as new competitors and technologies emerge. The regulatory push also highlights growing concerns around data privacy and compliance, compelling both retailers and technology partners to innovate within stricter frameworks. This evolving landscape is expected to accelerate the adoption of AI-powered tools and reshape the way retailers interact with consumers, ultimately redefining the competitive dynamics of digital commerce.

IADS Notes: The EU’s intervention coincides with major industry shifts, as seen in January 2026 when Forbes and Bloomberg reported on Google and Walmart’s investments in agentic commerce and AI-powered shopping on Gemini, driving automation and personalisation in retail. In the same month, the Financial Times highlighted Google’s integration of personalised shopping ads into its AI tools, intensifying competition and raising regulatory concerns. The surge in generative AI-driven traffic, with an 830% increase noted by Forbes in November 2025, demonstrates the urgency for retailers to optimise for AI answer engines. Additionally, Journal du Net in November 2025 analysed how generative AI and evolving search behaviours are challenging Google’s dominance, reinforcing the significance of the EU’s regulatory stance in accelerating these transformations.

Google should allow third-party search engines access to data, EU says