TLDR
- GOOGL Soars 9% as France Hits Google With €325M Cookie Law Fine
- Google Fined €325M by CNIL, Yet GOOGL Stock Surges on Market Faith
- Despite €325M Fine, Alphabet Stock Climbs as Investors Stay Bullish
- CNIL Fines Google Over Cookies; Market Cheers With 9% Stock Jump
- Google, Shein Fined Millions for Cookies, GOOGL Rallies Regardless
Alphabet Inc. (GOOGL) stock surged 9.14% on September 3, closing at $230.66, driven by renewed market confidence. After-hours trading pushed the GOOGL stock price higher to $231.75, signaling strong momentum.
This spike coincided with a major development: France’s CNIL fined Google €325 million for violating cookie law.
Google Fined €325 Million by CNIL Over Cookie Practices
France’s data protection authority CNIL imposed a record €325 million fine on Google for breaching cookie consent regulations. The authority found that Google failed to obtain free and informed consent before setting advertising cookies on users’ browsers. CNIL criticized Google’s use of a “cookie wall” that required users to accept tracking before proceeding.
The regulator cited the sheer scale of Google’s reach in France, where over 53 million users were impacted. Gmail users also saw unsolicited ads inserted between emails, which CNIL classed as direct canvassing. Such practices require prior consent, which Google allegedly failed to secure.
The CNIL described Google’s consent request process as opaque and lacking sufficient clarity for users. Authorities insisted that non-compliance had persisted despite previous warnings. Google now faces additional fines of €100,000 per day if it fails to comply within six months.
GOOGL Stock Gains Despite Regulatory Pressure
While the penalty marks Google’s third major fine by CNIL, GOOGL stock reacted positively, showing investor confidence in the firm’s fundamentals. The 9.14% increase in GOOGL stock indicates optimism, potentially driven by resilience in advertising revenue and broader tech sector recovery. Market participants appeared to discount regulatory risks in favor of growth prospects.
Analysts viewed the fine as significant but not damaging to Google’s long-term earnings outlook. Though CNIL recommended a heavier €520 million penalty, the €325 million figure settled the case for now. Google stated it would review the decision and noted ongoing compliance efforts.
Despite previous fines totaling €250 million from 2020 and 2021, GOOGL stock has maintained an upward trajectory. Google continues to dominate in Europe, with its services integrated deeply into digital routines. Regulatory scrutiny remains intense, but the company’s scale provides a buffer.
Shein Also Penalized as CNIL Targets High-Traffic Sites
Fast-fashion platform Shein received a €150 million fine for similar cookie violations affecting 12 million users in France. CNIL said Shein gathered vast data without informed user consent or sufficient transparency and failed to offer meaningful options for users to withdraw consent.
Shein has since updated its systems to meet compliance standards under EU and French law. However, the company plans to appeal the fine, calling it disproportionate to the scale of alleged breaches. CNIL emphasized that its broader strategy focuses on large-scale sites with high user traffic.
The fines against Google and Shein reflect a tightening regulatory environment across Europe. Cookie management is now central to digital policy enforcement. Companies operating across the EU must ensure full compliance to avoid similar financial and reputational damage.
