The US Justice Department (DOJ) is scrutinizing Alphabet Inc.’s (GOOG, GOOGL) Google’s AI strategy to assess potential modifications that could be implemented to address the company’s dominance in the search market. This investigation stems from an ongoing antitrust lawsuit against Google.
During a hearing in a federal court in Washington, DC, the DOJ requested further information regarding Google’s AI strategy. Judge Amit Mehta, who previously declared Google an illegal monopolist, granted the DOJ’s request. The trial has now entered the remedies phase, where the government will propose solutions to rectify Google’s alleged illegal behavior and promote competition in the search market.
DOJ attorney David Dahlquist emphasized the need for additional discovery to gain a comprehensive understanding of Google’s current business practices, particularly in light of recent developments in generative AI. The trial had previously focused on Google’s business practices up to the early part of this decade, including agreements to provide search services on Apple Inc.’s products. However, the DOJ’s investigation now encompasses the emergence of generative AI, a new category of search products being introduced by both Google and its competitors, such as Microsoft Corp.
The timeline for the remedies phase, which involves another trial-like proceeding, is still being determined. Judge Mehta has expressed a preference for arguments to take place in the first half of next year. The parties are expected to submit a revised scheduling proposal by next Friday.
This investigation comes on the heels of an antitrust lawsuit filed by Yelp Inc. against Google last month, following the federal court’s ruling labeling Google an illegal monopolist. Yelp alleges that Google maintains its monopoly in local search by prioritizing its own services over those of its competitors. This practice, according to Yelp, has stifled competition and diminished the quality of local search results.
Despite the ongoing legal challenges, some analysts believe that Google might escape penalties in two out of the three antitrust lawsuits it is currently facing. The outcome of these lawsuits and the DOJ’s investigation into Google’s AI strategy will likely have a significant impact on the future of the search market and the broader technology landscape.
