This week, testimony from Google’s ongoing antitrust trial revealed that the tech giant makes significant monthly payments to Samsung in exchange for the preinstallation of its Gemini AI app on Samsung devices, according to a Bloomberg report. The revelation has added new layers to an already complex case, where Google’s dominance in the search engine market has come under scrutiny. With Judge Amit Mehta’s ruling declaring Google’s search engine a monopoly, the focus has shifted to what penalties Google could face as a result.
Google’s Payments and the Gemini Deal with Samsung
Peter Fitzgerald, Google’s vice president of platforms and device partnerships, testified on Monday that the payments to Samsung began in January 2023, shortly after Google was found to have violated antitrust laws. The payments were part of an agreement that saw Google’s Gemini AI assistant become the default app on Samsung’s Galaxy S25 series when users long-pressed the power button, relegating Samsung’s own assistant, Bixby, to a secondary role.
The Gemini deal with Samsung is reportedly a two-year arrangement, under which Google not only makes fixed monthly payments but also shares a percentage of its subscription revenue from the Gemini app. While the exact amount of money involved has not been disclosed, DOJ lawyer David Dahlquist referred to the sum as “enormous,” suggesting that the scale of Google’s payments is substantial. This deal underscores the immense financial influence that Google can wield to secure default placement on popular devices.
Fitzgerald further testified that Google’s payments to Samsung came after the company had faced antitrust scrutiny over its previous arrangements with other companies, such as Apple. These deals, which have long been at the center of antitrust concerns, are now being scrutinized more closely as the case moves forward. The situation is complicated by the fact that Google’s competitors, including Microsoft and Perplexity, had also pitched Samsung on preinstalling their own AI assistant apps, showcasing the competitive landscape in which Google is operating.
The DOJ’s Push for Stricter Penalties and Future Restrictions
As the trial continues, the Department of Justice (DOJ) has been pushing for more stringent penalties for Google, suggesting that the company’s default placement deals could be banned entirely. The DOJ has also argued that Google should be required to sell Chrome and license the majority of the data that fuels its search engine. These proposals are part of a broader push to curb Google’s monopoly power and prevent the company from engaging in similar practices in the future.
Internal documents presented during the trial suggest that Google had considered even more restrictive distribution agreements with its partners, potentially requiring them to preinstall Gemini alongside other Google products like Search and Chrome. This, according to the DOJ, would represent an even greater entrenchment of Google’s market power, making it harder for competitors to gain traction in the search and AI spaces.
Google, for its part, has argued that it should only be required to give up its default placement deals with device manufacturers, rather than facing more drastic penalties. The company’s legal team has emphasized that it should be allowed to continue competing in the market without being forced to make significant concessions that could harm its business operations.
As the case progresses, the outcome will likely have far-reaching implications for Google and its business practices, particularly in relation to its dominance in the search engine and AI markets. With the DOJ seeking to impose harsher restrictions, the trial could set a significant precedent for how tech giants are regulated in the future.
