AI-pushed, Google Search not destroyed

On Tuesday in Washington, US district judge Amit Mehta ruled against severe consequences proposed by the Department of Justice against Google, which included the forced sale of the tech behemoth's Chrome browser, which provides data that helps its ad business deliver targeted ads. This reprieve in the most high-profile US antitrust case of recent years has been brought on by AI-driven search. Google gets to keep Chrome and Android because the court, which last year found it abusing its monopoly power, now finds the market for search has changed enough to not justify carving up Google. 'Generative AI tools such as ChatGPT, Claude and Perplexity now represent genuine alternatives to Google Search,' the ruling said. As a result, Google can continue to pay distributors such as Apple to use its search engine. Importantly, the verdict directed Google to share its data with rivals to further open up competition in online search.

The judicial remedy relies on the premise that venture capital in AI-driven search is surging, and Google is best placed to uphold the quality of its search engine. Making it share its technical knowledge would, however, give rise to the 'free rider' problem, where competitors gain unduly from a company's innovation. Google is yet to demonstrate a capacity to carry its market dominance of search into generative AI and, thus, gets to keep Chrome, which would find it difficult to survive as a standalone product owned by another company. Distributors like Apple would face collateral damage if Google's search were degraded by any change of ownership, or dilution of innovation.

It could be years before Google is made to comply with these terms, if at all. The case will head for the US Supreme Court after Google appeals it being termed an illegal monopolist. Yet, various parts of Google are facing antitrust action in the US, and the company will probably find it difficult to remain in its current form indefinitely. A breather in the most bruising battle should help Google to make a bigger play in AI.