Last year, Google quietly investigated deals that enhance the grip of Android phones by locking not only the search engine but also the Gemini AI app and Chrome browser as default. Its internal strategy came to light on the second day of a major antitrust trial in Washington, Reuters reported.
The findings came less than a week after a federal judge discovered that Google was found guilty of illegal monopoly in the online advertising market. The judge determined that Google illegally controls two key markets in online advertising and is a major victory for the US Department of Justice in its ongoing antitrust battle with tech giants.
According to a Reuters report, the U.S. Department of Justice is joining a coalition of state attorney generals to break Google’s control in online searches. They are asking the courts to force them to sell their chrome browser and make structural changes that disrupt the current footing of search and advertising.
“We believe that Alphabet’s Google will provide Android phone makers such as Samsung last year, as well as the exclusiveness of the Gemini AI app and Chrome browser as well as the search app.
US District Judge Amit Mehta has already ruled that Google has secured its monopoly through a default search agreement (default search agreements like Samsung) that boxed out competitors before users touch the screen.
On April 1st, Google signed a new agreement with Samsung that removed these restrictions. The deal is currently non-exclusive, so Samsung can load its rival search app if necessary. Still, prosecutors pointed out that Google never publicly announced the change, despite Google trying to show integrity by changing its contract.
At the heart of the trial there is wider concern. This means that Google’s search control could be passed on to AI. Prosecutors said Monday that the growth of the company’s AI footprint through apps like Gemini is just another way to bring people back to search engines and keep rivals like ChatGpt in the shadows.
Nick Turley, Openai’s product director at ChatGpt, is scheduled to testify on Tuesday. Prosecutors plan to highlight how a deal with Google’s device maker will make it difficult for competitors to acquire distribution of AI tools.
Google claims that in this case this case has nothing to do with AI. The company faces tough competition with players like Meta, and says users are free to choose the tools they like.
Still, what has surfaced in court suggests that Google had made a big bet on default placement to pilot not only search behavior but also AI’s future.
Meanwhile, the latest decisions could put Google’s advertising business in real danger. DOJ argued that the company should be forced to sell Google Ad Manager, including both ad servers and ad exchanges.
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