Google automotive services, its in-car technology arm, is facing a ban in Germany after regulators said it was anti-competitive.
Nowadays many cars come fitted with an interactive screen to help drivers with tasks like navigation, making calls or changing songs.
Alphabet Inc (NASDAQ:GOOG)-owned Google provides car makers with apps for these screens such as Maps, Play Store and Assistant.
Germany’s Federal Cartel Office is concerned that bundling this tech as a package could mean rivals providing just a single service have less chance of competing in the market.
Yet, the tech giant argues there is “enormous competition in the connected car space” and that thousands of applications can work with Google’s car software system, Android Automotive.
The decision comes only a day after the Californian group was sued by Gannett, the US’s largest newspaper publisher.
Claims were made that Google’s digital ads were “anti-competitive” and “deceptive”.
In Europe, similar concerns have been echoed with regulators in Brussels calling for a breakup of its advertising division.
Shares in Alphabet have dropped by 1.7% to US$120 on Wednesday.