Competition regulation

Google stopped Motorola from using Perplexity as default assistant

A senior executive at Perplexity AI has testified that Google prevented Motorola from setting the AI startup’s assistant as the default on new smartphones, citing restrictive contracts.

The testimony came during a trial seeking remedies after Google was found to have unlawfully maintained a search monopoly.

Although Motorola will preload the app, it cannot make it the default due to binding agreements with Google. Perplexity’s Chief Business Officer, described the difficulty of replacing Google’s assistant on Android phones, saying Google’s terms create an environment where device makers fear losing revenue.

The CEO added that ongoing negotiations with other companies only became possible due to pressure from the US Department of Justice’s antitrust case.

The Justice Department is asking the court to ban Google from paying for default placements, which would also affect its AI products like Gemini.

Meanwhile, Perplexity is developing its own browser, Comet, and voiced concern about any Chrome sale undermining open-source access. The company does not support OpenAI’s interest in acquiring the browser, citing past inconsistencies in its open-source commitments.

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White House condemns EU fines on Apple and Meta

The White House has strongly criticised the EU after landmark fines were imposed on Apple and Meta Platforms, describing the penalties as a ‘novel form of economic extortion’ that the US would not tolerate.

The European Commission fined Apple €500 million and Meta €200 million under the Digital Markets Act (DMA), a new law designed to rein in the power of dominant tech giants.

Rather than viewing the DMA as a fair attempt to promote market competition, US officials called it ‘discriminatory’ and claimed it unfairly targets American firms, undermines innovation, and restricts civil liberties.

The White House warned that such extraterritorial measures would be treated as trade barriers and hinted at retaliation.

At the same time, tensions were mounting on another front, with US Treasury Secretary Scott Bessent acknowledging that tariffs between the US and China were unsustainable.

He said both sides must lower their tariffs, currently as high as 145 per cent, instead of expecting unilateral moves, suggesting a potential thaw in the ongoing trade war.

President Trump, while indicating openness to cutting Chinese import duties, also threatened to raise the existing 25 per cent tariff on Canadian car imports. He said the US should focus on building its own vehicles instead of relying on foreign manufacturers.

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Meta under scrutiny in France over digital Ad practices

Meta, the parent company of Facebook, is facing fresh legal backlash in France as 67 French media companies representing over 200 publications filed a lawsuit alleging unfair competition in the digital advertising market. 

The case, brought before the Paris business tribunal, accuses Meta of abusing its dominant position through massive personal data collection and targeted advertising without proper consent.

The case marks the latest legal dispute in a string of EU legal challenges for the tech giant this week. 

Media outlets such as TF1, France TV, BFM TV, and major newspaper groups like Le Figaro, Liberation, and Radio France are among the plaintiffs. 

They argue that Meta’s ad dominance is built on practices that undermine fair competition and jeopardise the sustainability of traditional media.

The French case adds to mounting pressure across the EU. In Spain, Meta is due to face trial over a €551 million complaint filed by over 80 media firms in October. 

Meanwhile, the EU regulators fined Meta and Apple earlier this year for breaching European digital market rules, while online privacy advocates have launched parallel complaints over Meta’s data handling.

Legal firms Scott+Scott and Darrois Villey Maillot Brochier represent the French media alliance.

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Ubisoft under fire for forcing online connection in offline games

French video game publisher Ubisoft is facing a formal privacy complaint from European advocacy group noyb for requiring players to stay online even when enjoying single-player games.

The complaint, lodged with Austria’s data protection authority, accuses Ubisoft of violating EU privacy laws by collecting personal data without consent.

Noyb argues that Ubisoft makes players connect to the internet and log into a Ubisoft account unnecessarily, even when they are not interacting with other users.

Instead of limiting data collection to essential functions, noyb claims the company contacts external servers, including Google and Amazon, over 150 times during gameplay. This, they say, reveals a broader surveillance practice hidden beneath the surface.

Ubisoft, known for blockbuster titles like Assassin’s Creed and Far Cry, has not yet explained why such data collection is needed for offline play.

The complainant who examined the traffic found that Ubisoft gathers login and browsing data and uses third-party tools, practices that, under GDPR rules, require explicit user permission. Instead of offering transparency, Ubisoft reportedly failed to justify these invasive practices.

Noyb is calling on regulators to demand deletion of all data collected without a clear legal basis and to fine Ubisoft €92 million. They argue that consumers, who already pay steep prices for video games, should not have to sacrifice their privacy in the process.

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The EU Commission hits Apple and Meta with draconian fines

The European Commission has fined tech giants Apple and Meta a combined €700 million, marking the first penalties under the EU’s Digital Markets Act (DMA). 

The act, designed to rein in the dominance of the world’s largest online platforms, targets practices that the EU considers harmful to consumer choice and digital competition.

Apple case

Apple received a €500 million fine for its App Store’s restrictive ‘steering terms,’ which the Commission found fail to allow users to discover better offers on other marketplaces. 

Apple defended its position, calling the EU’s decision an unfair attack on its business model and pledging to appeal.

Meta case

Meta was fined €200 million for its controversial ‘pay or consent’ model introduced on Facebook and Instagram in the EU in late 2023. 

The Commission argued that Meta’s practice of forcing users to accept the combination of their data for targeted advertising breaches privacy rights under the DMA. 

Meta responded sharply, accusing the EU of targeting successful American firms while giving a pass to their European and Chinese counterparts.

Larger context:

The fines come when transatlantic tensions over trade and regulation escalate. 

Although the European Commission insists the sanctions are unrelated to US-EU trade disputes, the White House has previously warned that such actions would face scrutiny and could prompt retaliatory tariffs. 

Both Apple and Meta now have 60 days to comply with the rulings or face additional penalty payments.

Despite the regulatory significance of the decision, the announcement was delivered via press release, with key EU officials overseeing the DMA absent. 

Their absence sparked questions about political coordination and timing, especially given recent US visits by EU leaders and ongoing diplomatic friction over digital regulation.

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OpenAI eyes Chrome in bid to boost ChatGPT

OpenAI has expressed interest in acquiring Google’s Chrome browser if it were to be made available, viewing it as a potential boost for its AI platform, ChatGPT.

The remarks, made by Nick Turley, head of product for ChatGPT, surfaced during the US Department of Justice’s antitrust trial against Google. The case follows a 2023 ruling that found Google had maintained an illegal monopoly in online search and advertising.

Although Google has shown no intention to sell Chrome and plans to appeal, the DoJ has suggested the move as a remedy to restore competition.

Turley disclosed that OpenAI previously approached Google to use its search technology within ChatGPT, after facing limitations with Microsoft Bing, its current provider.

An email from OpenAI presented in court showed the company proposed using multiple partners, including Google’s search API, to improve the chatbot’s performance. Google, however, declined the request, citing fears of empowering rivals.

Turley confirmed there is currently no partnership with Google and noted that ChatGPT remains years away from answering most queries using its own search system.

The testimony also highlighted OpenAI’s distribution challenges. Turley voiced concerns over being shut out of key access points controlled by major tech firms, such as browsers and app stores.

While OpenAI secured integration with Apple’s iPhones, it has struggled to achieve similar placements on Android devices. Turley argued that forcing Google to share search data with competitors could instead speed up ChatGPT’s development and improve user experience.

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ChatGPT search grows rapidly in Europe

ChatGPT search, the web-accessing feature within OpenAI’s chatbot, has seen rapid growth across Europe, attracting an average of 41.3 million monthly active users in the six months leading up to March 31.

It marks a sharp rise from 11.2 million in the previous six-month period, according to a regulatory filing by OpenAI Ireland Limited.

Instead of operating unnoticed, the service must now report this data under the EU’s Digital Services Act (DSA), which defines monthly recipients as users who actively view or interact with the platform.

Should usage cross 45 million, ChatGPT search could be classified as a ‘very large’ online platform and face stricter rules, including transparency obligations, user opt-outs from personalised recommendations, and regular audits.

Failure to follow DSA regulations could lead to serious penalties, up to 6% of OpenAI’s global revenue, or even a temporary ban in the EU for ongoing violations. The law aims to ensure online platforms operate more responsibly and with better oversight in the digital space.

Despite gaining ground, ChatGPT search still lags far behind Google, which handles hundreds of times more queries.

Studies have also raised concerns about the accuracy of AI search tools, with ChatGPT found to misidentify a majority of news articles and occasionally misrepresent licensed content from publishers.

Instead of fully replacing traditional search, these AI tools may still need improvement to become reliable alternatives.

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Japan tells Google to stop Android search dominance

Japanese regulators have accused Google of breaching the country’s anti-monopoly laws by restricting competition through the pre-installation of its search engine on Android smartphones.

The Japan Fair Trade Commission (JFTC) issued a cease and desist order on Tuesday, directing the US tech giant to halt the practice.

Google Japan called the move ‘regrettable’ and emphasised its long-standing investment in Japan to support innovation. The company has not yet indicated whether it will appeal the ruling.

The JFTC’s investigation began in 2023, with input from overseas regulators handling similar concerns in the United States and Europe.

This marks the first time the JFTC has taken such action against a major global technology firm. It follows global scrutiny of Google’s dominance, including a US court ruling last year that found Google had unfairly used its market power to suppress rivals.

European authorities have also raised similar concerns, accusing the company of monopolistic behaviour.

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Seoul unveils $4.9 billion chip support package

South Korea has announced a $4.9 billion boost to its semiconductor industry amid concerns over possible US tariffs targeting key export sectors.

The government plans to increase its total chip support package from $18.2 billion to $23.1 billion, in what officials describe as an urgent effort to shield the economy from intensifying global trade tensions.

President Donald Trump’s threat of a 25 percent tariff on South Korean goods has unsettled markets and raised fears for the country’s vital semiconductor and automotive industries.

Although the United States tariffs were temporarily suspended for 90 days, South Korea’s finance minister Choi Sang-mok said that duties on sectors such as chips and pharmaceuticals still remain a possibility. He urged swift action during what he called a ‘crucial window’ to keep South Korea competitive on the global market.

The expanded investment will fund infrastructure, talent development, and support for new chip clusters currently under construction. The measure is part of a broader $8.4 billion revised supplementary budget that requires approval from the National Assembly.

In addition to the chip support, Seoul has also rolled out a $2 billion emergency package for carmakers facing potential US tariffs, as the country works to navigate growing uncertainty in global trade.

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EU plans major staff boost for digital rules

The European Commission is ramping up enforcement of its Digital Services Act (DSA) by hiring 60 more staff to support ongoing investigations into major tech platforms. Despite beginning probes into companies such as X, Meta, TikTok, AliExpress and Temu since December 2023, none have concluded.

The Commission currently has 127 employees working on the DSA and aims to reach 200 by year’s end. Applications for the new roles, including legal experts, policy officers, and data scientists, remain open until 10 May.

The DSA, which came into full effect in February last year, applies to all online platforms in the EU. However, the 25 largest platforms, those with over 45 million monthly users like Google, Amazon, and Shein, fall under the direct supervision of the Commission instead of national regulators.

The most advanced case is against X, with early findings pointing to a lack of transparency and accountability.

The law has drawn criticism from the current Republican-led US government, which views it as discriminatory. Brendan Carr of the US Federal Communications Commission called the DSA ‘an attack on free speech,’ accusing the EU of unfairly targeting American companies.

In response, EU Tech Commissioner Henna Virkkunen insisted the rules are fair, applying equally to platforms from Europe, the US, and China.

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