In a recent move, Google has proposed a set of restrictions regarding the distribution of its generative AI chatbot, Gemini Assistant, in response to ongoing antitrust allegations from the U.S. Justice Department. The proposal aims to prevent Google from requiring its partners, including device manufacturers and wireless carriers, to distribute Gemini to their users across the U.S. for three years. This marks a significant shift from a period where Google leveraged exclusive arrangements to promote its search engine, helping it secure a dominant position in the market.
The Justice Department has called for more extensive measures, including the sharing of data with competitors and the divestment of Google’s Chrome browser. However, Google has firmly rejected the notion of selling any part of its business or increasing data transparency with rivals. Instead, the company believes that the restrictions it has proposed are more moderate compared to the government’s demands.
This legal battle follows a recent ruling by U.S. District Judge Amit Mehta, who concluded that Google had violated antitrust laws through its previous arrangements with partners that solidified its position as the default search engine. These arrangements were found to have suppressed competition, leading to higher ad prices and increased revenues for Google. Mehta’s upcoming hearings in April will address the penalties Google may face, with a decision expected by August.
As generative AIs like Gemini and ChatGPT emerge as new competitors to traditional search engines, the Justice Department is now focused on ensuring that Google does not extend its search dominance into this new domain. Investors, however, remain optimistic despite the antitrust scrutiny, with Google’s parent company, Alphabet, seeing a substantial rise in stock prices this year.
Under the proposed restrictions, Google could still promote Gemini through partnerships but would not have the power to mandate that its partners exclusively promote the AI tool. Furthermore, partners would have the freedom to collaborate with rival AI companies as well.
The government and Google are currently at odds regarding the duration and intensity of the proposed remedies, with the Justice Department seeking to extend restrictions over a decade, while Google suggests a three-year limit. Shifting regulations in a fast-evolving tech landscape, particularly influenced by the rapid advancements in AI, will be a critical focus of the court proceedings.
As preparations continue for the hearings, both parties are gathering evidence from various AI companies to strengthen their respective positions. If the proposed changes take effect, the integration of Gemini into users’ lives may look markedly different compared to Google’s previous search services.
