The US Department of Justice won its antitrust case against Google, finding the company engaged in anticompetitive acts in advertising technology. The ruling states Google harmed publishers and users by maintaining monopoly power in the publisher ad server and ad exchange markets. Google was found liable under the Sherman Act, but the court dismissed claims regarding ad networks. Google plans to appeal the decision.
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OpenAI is developing an X-like social media platform, currently in early stages with a prototype focused on ChatGPT's image generation and a social feed. CEO Sam Altman is gathering feedback, but it’s unclear if the platform will be a separate app or integrated into ChatGPT. This initiative may heighten rivalry with Elon Musk and Meta, which is also planning a social feed for its AI assistant. The project aims to use real-time data for AI training.
Microsoft is using Bing to mimic Google in search results to encourage users to switch from Google to Bing and Edge. When searching for Google on Bing without signing in, users see a page designed to resemble Google, including a search bar and a Google Doodle-like image. This tactic aims to confuse users, especially when setting up new PCs. Google’s Chrome team criticized Microsoft for this behavior, highlighting a history of similar tactics.
X’s Grok AI chatbot is now available to free users on X, allowing non-Premium subscribers to send up to 10 messages every two hours. Previously, Grok was only accessible to Premium users. Launched last year as a humorous assistant, Grok added a text-to-image feature in August. The free version aims to compete with other free chatbots like ChatGPT and Google Gemini. xAI is also considering a standalone app for Grok, which competitors already offer.
Google and the DOJ met in court to debate Google's online ad tech monopoly. The DOJ argues Google used its ad tech products to dominate markets, while Google claims it faces competition. The trial's key issue is whether Google operates in one or three markets. The DOJ also accuses Google of deleting incriminating chat messages. Judge Brinkema will rule by the end of 2024, potentially leading to a second trial for remedies.
Google faces a £7 billion class action lawsuit in the UK for allegedly abusing its dominance in search, leading to higher advertising costs and consumer prices. The case, filed by Nikki Stopford, claims Google forced Android phone makers to use Google Search and Chrome and paid Apple to make Google the default search engine on Safari. Despite Google's attempt to dismiss the case, the UK’s Competition Appeal Tribunal ruled it can proceed.
Google is making a leadership change. CEO Sundar Pichai announced that Prabhakar Raghavan, senior VP in charge of search, ads, and other segments, will become Chief Technologist. Nick Fox will replace Raghavan, leading Search, ads, geo, and commerce. The Gemini app division will join Google DeepMind, and the Assistant team will become part of the platforms and devices team. This shift comes as Google aims to strengthen its AI position.
Judge James Donato ruled Google must open Google Play to competition for three years, allowing third-party app stores access to its full catalog unless developers opt out. Google must stop requiring Google Play Billing, allow developers to inform users of other payment methods, and link to downloads outside the Play Store. Google cannot offer incentives to favor its store. The ruling aims to foster competition and reduce Google's monopoly.
Google defended itself against anticompetitive claims by highlighting security benefits of a closed ad ecosystem. Executives argued that controlling ad tech ensures safety from fraud and bot traffic. They cited efforts to combat click fraud and maintain ad quality. Google emphasized that a closed system prevents security risks and benefits the industry, referencing past fraud schemes and collaborative efforts to improve ad security.
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