Google investors were delighted on Wednesday in response to what was long-awaited decision In the famous federal antitrust case against Google.
Federal judge Amit P. Mehta in the U.S. District Court for the District of Columbia on Tuesday. Despite previous rulings by Mehta, Google has determined that it can maintain its Chrome browser.
In response, Google stock has risen the largest upward, non-industrial-related distance gap since it was added to the S&P 500 in 2008. Custom-made investment group.
Instead of selling, the court asks Google to share search indexes and user data with competitors and refrain from exclusive agreements (though there are carve-outs that allow several exclusive agreements).
How is this a victory for Google?
The main reason behind this decision, which is primarily considered a victory for Google, was probably the emergence of AI.
“The emergence of genai changed the course of this case,” Justice Mehta said. Arbitration.
“There is a real prospect that only over a decade can a product emerge that poses a meaningful challenge to Google's market advantage,” the court ruled.
The court states, “Unlike typical litigation, in which the court's job is to resolve a dispute based on historical facts, here the court is asked to stare at the crystal ball and look at the future.”
Based on many witnesses portraying AI generated as a threat to budding competition against Google Search Business, the court determined that “market power” would determine the future of Google's search engine market domination.
We will see how that should unfold in the next few years, but the testimony given by top executives at Google and Apple in the trial can provide a roadmap of how the tech industry thinks about it.
Google Search Exclusive
Last year, Judge Mehta declared that Google held its monopoly in ads tied up through online searches and searches. On Tuesday afternoon, the judge decided on a remedy for the ruling, which would open search engine spaces for competition.
The judge had hoped that Google would control Google to sell from Chrome. This is the decision that would have been the most obvious way to combat monopoly. But instead, the judges took more modest actions, primarily aimed at limiting Google's exclusive agreements.
Google has requested that the remedy be limited to prohibiting an exclusive distribution agreement from entering into “genai technology space is very competitive and further restrictions will be unfairly blocked in that fight.”
ChatGpt is a competitor product of Google's Gemini Trails, but Tech Giant's generative AI offering is aimed at further advancement. Increase that investment In the expansion of technology.
Rivals aren't happy
This decision was undoubtedly a victory for Google and its parent company Alphabet stocks.
“This is a monster victory for Cupertino and Google,” wrote Dan Ives, Wedbush Securities Analyst and Head of Global Technology Research, in an analyst note on Tuesday.
Cupertino bass apple The court has decided to spare billions of dollars worth of Safari browser's default search engine to place Google, so the company is also considered a winner, even if it is not a party to the trial.
The competitors were disappointed.
“We don't believe that the remedies ordered by the court will force the necessary changes to address Google's illegal activities properly,” said a spokesman for the search engine Duckduckgo. I told Gizmod on tuesday.
How AI is blocking search
Generating AI and common search engines (called GSE in litigation) have complex relationships.
Generating AI technologies, especially chatbots like ChatGpt and Anthropic's Claude, are used by millions to answer questions that were Google search queries a few years ago.
Chatbots often also include links to websites as quotes in answers they provide, as search engines guide users, despite more options. Search engines take over this role so much that many websites and media organizations rely on these clicks to continue their business are no surprise I was worried.
“Chatbots perform information and network functions like those performed by GSES,” the ruling said, adding that the chatbots “is not yet close to exchange, but the industry is hoping that search engines will continue to add features because developers are similar to GSES.”
In his testimony, Apple's Eddy Cue is a senior vice president of the service and said generative AI products “may have had some impact” on search engine use.
“The volume of Google search queries in Apple's Safari web browser has declined for the first time in 22 years, probably due to the advent of the Genai chatbot,” Cue says.
When asked what it takes to select other competitors in Google as the browser's default search engine, Cue said existing search engines cannot abdicate Google, but if it evolves the right way, generative AI products could be.
So, LLM technology itself is already doing well, but it is when the generated AI product grows search index, that is, data available for search.
“What it does is create products that offer better results, new capabilities. You know, those are things people are interested in today,” Kew said.
How competitive are they?
However, despite the obvious competitive risks posed to AI-based search engines, the generated AI is integrated into search engines to increase competitiveness.
During the exam, Google search head Liz Reid said that Google search queries increased by “more than hundreds of millions of queries per month in the US alone.”
In the company's revenue call in July, CEO Sundar Pichai said Google's new AI feature is “end of it.” It's up 10% worldwide. ”
The executive also said Google is considering how Gemini, a Genai product, will become a search engine access point by reverting commercial queries back to search, court documents show.
As Google won this lawsuit based on proving that AI competes with its most valuable products, the focus shifted to how this complex dynamic technology competes between AI and the most highly regarded new technology, the underlying technology of the Internet, which provides the foundation of the current Internet.
