The Competition Commission of India (CCI) issued a confidential order on 7 August, requiring all parties involved in the case to return the reports. The CCI emphasised the need to maintain the confidentiality of sensitive information to prevent unauthorised disclosures. Although the order did not specify what information Apple was concerned about, a source indicated that Apple was worried about disclosing revenue figures from its India app store and its market share.
The reports from the CCI’s antitrust investigations unit in 2022 and 2024 concluded that Apple had exploited its dominant position in the iOS app store market. The recall of these reports, now involving revisions to remove confidential information, will affect other parties, such as Match Group and the Indian startup group ADIF, which includes financial giant Paytm.
Why does it matter?
The CCI’s decision to recall the reports follows a private complaint by Apple, who argued that versions shared with parties contained its confidential business information. The recall is rare and is expected to delay the proceedings by two to three months, according to lawyers familiar with the CCI’s processes.
Globally, Apple is under scrutiny for its market practices. In June, European Union antitrust regulators accused Apple of violating tech rules, potentially leading to substantial fines. Apple also faces an inquiry regarding new fees imposed on app developers. Despite these allegations, Apple maintains that it is a minor player in India’s smartphone market, where Google’s Android system dominates. By mid-2024, iOS powered just 3.5% of India’s 690 million smartphones, although Apple’s presence in the country has grown significantly over the past five years.
Google’s dominance in the search engine market faces growing challenges from AI advancements, particularly from OpenAI, while also dealing with ongoing antitrust scrutiny. A recent US ruling deemed Google’s search monopoly illegal, marking a significant victory for regulators. However, experts argue that the real threat to Google is the rapid adoption of AI tools like OpenAI’s ChatGPT, reshaping how people search the internet.
Despite Google’s long-standing control of around 90% of the global search market, the rise of AI-powered search alternatives is beginning to erode its position. Former Google engineers and industry analysts believe AI’s impact will be felt much sooner than the effects of antitrust rulings, which often take years.
Historically, Apple has partnered with Google for search services, but it is now exploring AI-driven alternatives. The tech giant has announced a non-exclusive partnership with OpenAI to integrate ChatGPT into its devices, signalling a shift from Google’s search dominance.
OpenAI’s move into the search market with its AI-powered SearchGPT further intensifies the competition. Some analysts predict that AI’s influence on search could outpace regulatory actions, potentially dismantling Google’s monopoly.
Why does it matter?
Although Google has the resources to lead in AI development, its response could have been faster than that of competitors like OpenAI’s swift rise. Google’s initial missteps with AI-powered search features, which were criticised for inaccuracies and errors, have raised concerns about the company’s ability to maintain trust with users.
Analysts suggest that while antitrust actions may not immediately weaken Google’s position, they could pave the way for increased competition in the search market. However, breaking Google’s dominance will be challenging, and whether these developments will lead to significant changes in consumer choice remains to be seen.
The UK’s Competition and Markets Authority (CMA) has launched a formal antitrust investigation nto Amazon’s $4 billion investment in AI startup Anthropic. This follows recent scrutiny of Google’s ties with the same company, as concerns grow over Big Tech’s strategic investments in AI firms. The CMA’s investigation will determine whether Amazon’s stake in Anthropic could harm competition within the United Kingdom, despite the e-commerce giant not holding a majority stake or board seat in the startup.
Anthropic, established in 2021 and known for developing large language models like its chatbot Claude, has raised $10 billion so far. Its public benefit corporation status is intended to distinguish it from rivals in the AI space. Despite Amazon’s significant investment, Anthropic maintains that its strategic partnerships do not compromise its independence or ability to collaborate with other companies. The CMA has 40 working days to decide whether to advance the investigation to a more in-depth phase.
The CMA’s move comes amid increasing concerns about Big Tech companies adopting a ‘quasi-merger’ approach to avoid full acquisitions, which would likely face greater regulatory scrutiny. The regulator has also been examining similar deals, including Microsoft’s investments in AI startups like OpenAI and Mistral AI. The outcome of the CMA’s probe into Amazon’s investment in Anthropic could have broader implications for how tech giants are regulated in their acquisition strategies.
Amazon’s investment is part of a wider trend in which leading tech companies are securing stakes in promising AI startups to ensure they stay ahead in the rapidly evolving AI sector. With the CMA’s investigation underway, the regulatory landscape for these types of deals is expected to become more stringent, potentially reshaping future investment strategies in the AI industry.
Apple’s lucrative deal with Google, worth $20 billion annually, could be jeopardised after a US judge ruled that Google operates an illegal monopoly. The agreement makes Google’s search engine the default on Apple devices, contributing significantly to Apple’s profits. Analysts suggest that Google might have to terminate this deal to avoid antitrust actions, which could result in a 4-6% profit loss for Apple.
The current pact extends until September 2026, with Apple having the option to prolong it for another two years. However, the judge might rule that Google must stop paying for default placement or mandate that Apple offer users a choice of search engines. Apple’s shares remained flat amid this uncertainty, while Alphabet saw minimal change after a recent decline.
Legal proceedings related to this case could be lengthy, potentially dragging into 2026 with appeals. Meanwhile, Apple might explore alternatives, such as integrating Microsoft Bing or developing a new search product with OpenAI. The company has already announced plans to incorporate OpenAI’s ChatGPT and is negotiating with Google to add the Gemini chatbot.
Apple is also enhancing Siri with AI technology to improve its functionality, aiming to capitalise on new AI advancements despite the potential short-term financial impact of losing the Google deal. This shift towards AI-powered search services could help Apple navigate regulatory scrutiny and open new revenue streams.
A US judge ruled on Monday that Google violated antitrust law by spending billions to establish an illegal monopoly as the world’s default search engine. Such a landmark decision marks a significant victory for federal authorities challenging Big Tech’s market dominance. The ruling sets the stage for a second trial to determine potential remedies, including breaking up Google’s parent Alphabet, which would significantly alter the online advertising landscape.
Judge Amit Mehta of Washington, D.C., concluded that Google is a monopolist and has maintained its monopoly through unlawful means. Google controls 90% of the online search market and 95% of smartphone searches. The ‘remedy’ phase could be prolonged, followed by possible appeals that might extend the legal battle into the next few years.
Alphabet’s shares fell by 4.5% on Monday amid a broader decline in tech stocks due to recession fears. Google, which plans to appeal the ruling, stated that the decision acknowledges it offers the best search engine but argues it shouldn’t be restricted from making it easily accessible. US Attorney General Merrick Garland hailed the ruling as a historic win for the American people, emphasising that no company is above the law.
The ruling also highlighted that Google paid $26.3 billion in 2021 to secure its search engine’s default status on smartphones and browsers, maintaining its dominant market share. The legal case, filed by the Trump administration, is the first big decision in a series of antitrust cases against Big Tech, including ongoing lawsuits against Meta, Amazon, and Apple.
Senator Amy Klobuchar noted that the case’s progression across administrations demonstrates strong bipartisan support for antitrust enforcement. She praised the ruling as a significant victory for competition, reinforcing that antitrust enforcement remains robust in addressing monopolistic practices.
OpenAI, previously a close partner of Microsoft, is now officially recognised as a competitor. Microsoft’s recent SEC filing marks the first time the company has publicly acknowledged this shift. OpenAI is now listed alongside tech giants like Google and Amazon as a competitor in both AI and search technologies.
The relationship between the two companies has been under scrutiny, with antitrust concerns arising from the FTC. Microsoft’s decision to relinquish its board observer seat at OpenAI follows a series of significant events, including the brief dismissal of OpenAI’s CEO Sam Altman. The filing may reflect a strategic move to alter public perception amid these investigations.
Silicon Valley has a history of companies navigating complex relationships, balancing roles as both partners and competitors. The dynamic between Yahoo and Google in the early 2000s serves as a notable example. Microsoft and OpenAI might be experiencing a similar evolution, with both entities maintaining competitive and cooperative elements.
Meanwhile, Microsoft continues to expand its own AI initiatives. The hiring of Inflection AI co-founders to lead a new AI division and the development of Microsoft Copilot highlight the company’s broader strategy. The diversification suggests a strategic approach to AI that goes beyond its ties with OpenAI.
US progressive groups and Senator Elizabeth Warren have called on the Department of Justice to investigate Nvidia for potential anti-competitive practices, citing the company’s dominant position in the AI chip market. Nvidia’s market value surged to $3 trillion this summer, driven by high demand for its advanced chips used in AI models. The groups, including Demand Progress, criticised Nvidia’s bundling of hardware and software, arguing that it restricts competition and stifles innovation.
The Department of Justice has been directed to oversee potential antitrust probes into Nvidia, while the Federal Trade Commission is investigating other tech giants like Microsoft and OpenAI. Nvidia maintains that it follows all regulations and supports a wide range of industries and innovators.
With approximately 80% of the AI chip market and nearly 100% of the market excluding cloud providers’ custom chips, Nvidia’s dominance is significant. Senator Warren has expressed concerns about the risks of a single company controlling the AI market. The Department of Justice has not commented on the case’s specifics, but antitrust officials are concerned about potential bottlenecks in the industry.
The European Commission has approved Hewlett Packard Enterprise’s (HPE) acquisition of Juniper Networks without any conditions. The Commission determined that the merger would not pose significant competition issues within the European Economic Area (EEA). HPE, a provider of IT infrastructure and cloud solutions, and Juniper, which specialises in networking and security solutions, did not significantly overlap in their markets.
The Commission’s investigation covered several areas, including wireless network equipment, Ethernet switches, and data centre switches. It concluded that the merged entity would still face substantial competition from other major players and would need more market power to disrupt competitive dynamics. The Commission also found no risk of anti-competitive bundling practices due to the differing nature of the products offered by the two companies.
With no substantial competition concerns raised, the Commission cleared the transaction unconditionally. The Commission was notified of the merger on 27 June 2024, and the review was completed within the standard 25 working days. More details on the case can be accessed on the Commission’s competition website under case number M.11457.
Silicon Valley AI startups are increasingly merging with major tech giants like Microsoft and Amazon. Due to financial constraints, many promising companies such as Inflection AI and Adept have seen key executives move to these tech giants through discreet deals. These transactions, often viewed as acquisitions, aim to bypass competition regulators.
Character AI and French startup Mistral struggle to secure the funding needed to remain independent. Even OpenAI, the creator of ChatGPT, is deeply tied to Microsoft through a $13 billion investment deal, ensuring exclusive access to its advanced models. Amazon has similarly invested in Anthropic to secure high-performing AI models.
The immense computing power required for developing generative AI, which can produce human-like content rapidly, necessitates substantial financial resources. As a result, many AI startups, founded by former leaders of major tech firms, rely on the support of large cloud providers to recreate the conditions of well-funded research labs. The shift like this one deviates from the traditional Silicon Valley startup narrative.
However, the consolidation of AI innovation under a few tech giants raises concerns about competition. Critics argue that aligning with these companies stifles creativity and innovation. Government regulators in the US, EU, and UK are scrutinising these deals, with recent actions indicating a growing regulatory interest in ensuring fair competition within the nascent AI industry.
Britain’s antitrust watchdog is examining Google-parent Alphabet’s partnership with AI startup Anthropic to assess its impact on market competition. The scrutiny comes amid growing global concerns about the influence of major tech companies on the AI industry following the AI boom sparked by Microsoft-backed OpenAI’s release of ChatGPT.
Regulators are scrutinising deals between big tech giants and AI startups, including Microsoft’s collaborations with OpenAI, Inflection AI, and Mistral AI, as well as Alphabet’s investments in companies like Anthropic and Cohere. Anthropic’s AI models, developed by former OpenAI executives Dario and Daniela Amodei, compete with OpenAI’s GPT series.
Last week, the UK’s Competition and Markets Authority (CMA) joined forces with US and the EU regulators to ensure fair competition in the AI sector. The CMA is now inviting public comments on the Alphabet-Anthropic partnership until 13 August before deciding whether to initiate a formal investigation. The CMA’s decision will be based on feedback during this initial consultation.
