Google Pledges Not to Impose Gemini on Partners in Antitrust Solution Proposal

For Google’s new AI chatbot, Gemini Assistant, to become more popular than OpenAI’s ChatGPT, it might have to do so without the same kind of promotional deals that helped make Google search a household name in the U.S.

On Friday, Google submitted a proposal in a U.S. federal court suggesting that for the next three years, it would not force its partners—like device makers, browsers, and wireless carriers—to offer Gemini to American users. Google also plans to let these partners have more freedom in choosing their default search providers.

This proposal comes in response to the U.S. Justice Department’s recent demand for Google to ease its control over its partners, share more data with competitors, and possibly sell its Chrome browser business. Google firmly rejected selling any part of its business or sharing more information with competitors, suggesting restrictions that are less extensive than those requested by the government.

This legal battle follows a decision last August by U.S. district judge Amit Mehta in Washington, D.C. He ruled that Google breached federal antitrust laws by making deals to be the default search engine on platforms like iOS, often in exchange for sharing ad revenue. These deals helped Google maintain a strong user base and monopolize search and search ads, allowing the company to raise ad prices and see significant revenue growth, according to Mehta.

Judge Mehta now has to decide on penalties for Google. Hearings are set to start in April, with a decision expected by next August.

The rise of AI tools like ChatGPT and Gemini is influencing the court case, as the Justice Department and several state attorneys general want to ensure Google doesn’t dominate the emerging AI field like it did with traditional search.

Even after Mehta’s decision, there are likely to be appeals, meaning any restrictions on Google could take years to implement. Despite this, investors remain optimistic about Google’s future, with Alphabet’s stock rising over 37% in 2024, marking one of its best years since going public two decades ago.

Dominance Transfer

During this year’s trial, Google claimed its search dominance is due to creating a product users love. The Justice Department argued that people often stick with default settings on their devices, which frequently means using Google. Google’s recent proposal shows it wants to keep some of these default settings, like being the default search on certain Samsung phones in the U.S., while temporarily easing requirements for others.

Google could still negotiate deals to promote Gemini. The proposal doesn’t stop Google from paying Samsung to feature Gemini on its devices. However, under the proposed restrictions, Google couldn’t force partners to promote Gemini just to offer search, Chrome, or the Google Play app store. Partners would also be free to collaborate with other AI companies like OpenAI.