** Shares in EssilorLuxottica ESLX.PA fall 4.6%, trailing at the bottom of France's benchmark CAC 40 .FCHI index, as traders point to competition from Alphabet's GOOGL.O Google heating up

** Google plans to launch artificial intelligence-powered glasses in 2026 with Warby Parker WRBY.N

** The initiative includes two types of AI devices: one with an in-lens display and another offering screen-free assistance, similar to products from Meta and EssilorLuxottica

** Still, the threat is not new, and EssilorLuxottica and Meta are not resting on their laurels, says Cedric Rossi, analyst at Stifel

** If losses hold, EssilorLuxottica will post their biggest daily drop since May 23, wiping more than 6 billion euros ($6.99 billion) off its market value

($1 = 0.8588 euros)

(Reporting by Gianluca Lo Nostro, Jakob Van Calster, Danilo Masoni)

((gianluca.lonostro@thomsonreuters.com;))