DOJ adds to Google’s antitrust trial the AI-driven search monopoly

The US Department of Justice (DOJ) launched its opening arguments this week in a landmark antitrust trial against Google, aiming to curb the tech giant’s dominance in online search and prevent it from leveraging AI to entrench its position further.

Prosecutors argue that Google’s market control is bolstered by exclusive contracts, such as being the default smartphone search engine, and now by integrating AI tools that guide users back to its ecosystem. 

The DOJ calls for decisive action, including the potential sale of Google’s Chrome browser and changes to its default settings agreements with device manufacturers.

Central to the DOJ’s argument is the concern that Google’s AI products, including its Gemini app installed on Samsung devices, create feedback loops reinforcing its search monopoly

Court documents reveal that Google pays Samsung a significant monthly sum for this privilege, with the deal potentially extending into 2028. 

The DOJ contends that remedies must be forward-looking to ensure competition as generative AI becomes increasingly intertwined with search.

Google, however, rejects the proposed measures as excessive. Its legal team argues that competitors perform well in AI without regulatory intervention and that forced divestitures or licensing obligations would harm innovation. 

The company insists that AI falls outside the scope of the case, which is focused on traditional search, and has pledged to appeal any adverse ruling. 

A key concern for Google is the DOJ’s suggestion that, should other remedies fail, the court could mandate the breakup of its Android mobile business, a move Google claims would disrupt the wider digital ecosystem.

DOJ officials emphasised that the legal remedies proposed are nonpartisan and reflect a consistent policy direction. Meanwhile, other tech giants, including Meta, are also under increasing scrutiny, with separate trials looming over market dominance and acquisitions.

DW Weekly #208 – US tariffs, the digital trade and digital policies court battles

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12 – 18 April 2025


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Dear readers,

Last week, we focused on the effects that the global trade war is producing worldwide. After President Trump’s administration increased tariffs, forcing major tech firms to rethink their strategies urgently, Apple swiftly responded to the looming trade barriers by orchestrating a record-breaking $2 billion iPhone airlift from India to the US, strategically sidestepping the elevated tariffs.

Meanwhile, the US has temporarily exempted certain critical electronics imported from China, including smartphones and semiconductor components, from tariff hikes.

The ripple effects of the US tariffs extend beyond US borders. South Korea, heavily reliant on its semiconductor exports, has launched an ambitious $23 billion investment into its domestic chip industry.

Parallel to the tariff turmoil, major US tech firms are embroiled in intensifying legal disputes concerning digital market dominance. The US Justice Department is pursuing legal action against Google, alleging monopolistic practices within its search and advertising services.

Echoing similar concerns, the Federal Trade Commission (FTC) is challenging Meta’s stronghold on the social media market, marking a critical moment in US antitrust enforcement.

These legal confrontations are not confined to the US. Japan recently directed Google to address its dominant position on Android search services, pressing for enhanced competition and user choice. 

In Europe, X (formerly Twitter) faces heightened scrutiny over its AI data-use policies, as the EU regulators investigate potential misuse of user data. 

Additionally, Meta has confirmed plans to utilise the EU user data for AI model training, prompting regulatory concerns and further legal scrutiny.

For the main updates and reflections, consult the Radar and Reading Corner below.

DW Team


RADAR

Highlights from the week of 12 – 18 April 2025

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The Global Blockchain Forum will bring together international crypto experts to discuss Bitcoin, adoption trends, and Russia’s crypto future.

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Community gains from DeepSeek’s open-source contributions.

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Despite significant investments, WLFI’s portfolio is down by $145.8 million, with losses primarily in its Ethereum holdings.

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Beijing claims US operatives targeted infrastructure and Huawei with NSA-led cyberattacks.

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Mayor Mizrachi confirmed Panama City’s plan to facilitate cryptocurrency payments, using banks to convert assets into fiat currency.

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Despite launching multiple probes under the Digital Services Act, the EU has yet to close any, prompting a recruitment push for its enforcement team.

amd launches new ai chips to take on leader nvidia

The US administration has tightened rules on AI chip exports, affecting AMD’s MI308 products and potentially causing major financial losses for the company.

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AI developers question Meta’s transparency after benchmark controversy.

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A cyber defence exercise involving 20 allied nations was held to strengthen coordination and improve response to attacks on critical infrastructure, led by NATO.

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Just 11% of El Salvador’s Bitcoin service providers are operational under the country’s Bitcoin Law, central bank data shows.

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As the global race to harness AI accelerates, a new international effort is working to ensure that progress doesn’t come at the cost of people or the planet.


READING CORNER
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What happens when machines not only speak like us but begin to mirror the subtleties of our personalities, emotions, and intentions — and we can no longer tell the difference?

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How do words get their meaning? Aldo Matteucci shows how terms like ‘dispositif’ and ‘consul’ gain meaning not through definitions, but through repeated use in historical and political contexts.

UPCOMING EVENTS
geneva human rights platform
23 April 2025
The event will provide a timely discussion on methods, approaches, and solutions for AI transformation of International Organisaitons. 
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Conversation on IP and AI will take place on April 23-24, 2025, focusing on the role of copyright infrastructure in supporting both rights holders and AI-driven innovation.

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The Hamburg Sustainability Conference (HSC) is a global gathering of leaders and changemakers from governments, international organizations, businesses, civil society, and academia. Together, they co-create innovative solutions for a sustainable and fair future. The next conference is scheduled for 2-3 June 2025.  

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.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Google uses AI and human reviews to fight ad fraud

Google has revealed it suspended 39.2 million advertiser accounts in 2024, more than triple the number from the previous year, as part of its latest push to combat ad fraud.

The tech giant said it is now able to block most bad actors before they even run an advert, thanks to advanced large language models and detection signals such as fake business details and fraudulent payments.

Instead of relying solely on AI, a team of over 100 experts from across Google and DeepMind also reviews deepfake scams and develops targeted countermeasures.

The company rolled out more than 50 LLM-based safety updates last year and introduced over 30 changes to advertising and publishing policies. These efforts, alongside other technical reinforcements, led to a 90% drop in reports of deepfake ads.

While the US saw the highest number of suspensions, with all 39.2 million accounts coming from there alone, India followed with 2.9 million accounts taken down. In both countries, ads were removed for violations such as trademark abuse, misleading personalisation, and financial service scams.

Overall, Google blocked 5.1 billion ads globally and restricted another 9.1 billion, instead of allowing harmful content to spread unchecked. Nearly half a billion of those removed were linked specifically to scam activity.

In a year when half the global population headed to the polls, Google also verified over 8,900 election advertisers and took down 10.7 million political ads.

While the scale of suspensions may raise concerns about fairness, Google said human reviews are included in the appeals process.

The company acknowledged previous confusion over enforcement clarity and is now updating its messaging to ensure advertisers understand the reasons behind account actions more clearly.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Google Search drops local domain URLs

Google is set to begin redirecting its country-specific search domains, such as google.fr or google.co.uk, to the main global address at google.com.

The company says the move is intended to streamline user experience across different regions, with the update being gradually rolled out over the coming months.

Although users will see google.com in their browser instead of their local version, Google assures that the way Search functions will remain the same.

Some users may be prompted to re-enter their search preferences during the transition, but results will still reflect local relevance.

Since 2017, the platform has delivered the same core Search experience regardless of whether users accessed it through a country-specific address or the global one.

With this standardisation already in place, Google has concluded that separate country domains are no longer necessary.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Justice Department pushes to curb Google monopoly

Google has pushed back against a US government proposal to break up its business, arguing that such a move would hurt consumers and reduce competition rather than enhance it.

In a court filing ahead of a remedy trial due to begin on 21 April, Google claimed the Justice Department’s plan to divest services like Chrome and Android would force users to adopt less effective alternatives.

The company stressed that consumers overwhelmingly prefer Google’s search engine and that its agreements with browser and device manufacturers do not prevent rivals from competing.

The Justice Department is asking the court to consider structural remedies, including breaking up parts of Google’s business or limiting its default search agreements, to curb what it deems monopolistic behaviour.

The agency originally proposed more aggressive action, such as divesting Google’s AI investments, but later backed down, citing concerns over unintended consequences in the fast-evolving AI sector.

Google has offered alternative remedies, including more flexibility for Android manufacturers to preload or set other search engines as default, without fully removing its own search partnerships.

A 15-day hearing will begin later this month, with both sides set to present evidence and call high-profile witnesses. Google’s CEO Sundar Pichai and Apple’s senior VP of services are among the 20 witnesses listed by the tech giant.

The Justice Department plans to call 19 witnesses, including executives from OpenAI, DuckDuckGo and Microsoft, as it argues for stronger measures to level the playing field in internet search.

For more information on these topics, visit diplomacy.edu.

Quantum breakthrough could be just years away

Most quantum professionals believe that quantum utility — the point at which quantum computers outperform classical machines in solving real-world problems — could be reached within the next decade.

According to a new survey by Economist Impact, 83% of global experts expect quantum utility to arrive in ten years or less, with one-third predicting it will happen in as little as one to five years.

Optimism aligns with some industry roadmaps, such as Finnish startup IQM, which is targeting quantum utility as early as next year.

However, there’s still little consensus on the timeline. While Google’s CEO Sundar Pichai recently suggested practically useful quantum computers could be five to ten years away, Nvidia’s Jensen Huang believes it may take at least 15 years — a remark that briefly shook confidence in quantum stocks.

Industry confusion over terms like ‘quantum utility,’ ‘advantage,’ and ‘supremacy’ only adds to the uncertainty, highlighting the need for clearer communication and better public understanding.

Despite the buzz, major challenges remain. Over 80% of professionals cite technical barriers, especially error correction, as a major hurdle.

A further 75% point to a lack of skilled talent in the field. While misconceptions about quantum computing are seen as slowing progress, the real bottlenecks lie in engineering and workforce development.

If these can be overcome, quantum computing could revolutionise sectors from pharmaceuticals and materials science to finance and cybersecurity — with profound implications, both promising and perilous.

For more information on these topics, visit diplomacy.edu.

Crypto ads on Google must meet MiCA standards

Google will begin enforcing a new crypto advertising policy in Europe on 23 April. Exchanges and wallet providers will be required to be licensed under the Markets in Crypto-Assets (MiCA) or Crypto Asset Service Provider (CASP) frameworks.

Advertisers must also meet local legal requirements and be certified by Google to promote crypto-related services in the region.

The change follows the implementation of MiCA in December 2024, the EU’s first comprehensive regulatory framework for digital assets. Some see Google’s move as beneficial for investor protection, while others warn it may create compliance gaps and higher barriers for smaller firms.

Bitget’s Hon Ng said the rules could reduce scams but warned smaller firms may struggle with MiCA’s requirements. National licensing timelines may also differ, risking inconsistent enforcement.

Others, like Mattan Erder from Orbs, argue the policy is more about shielding Google from legal risk than protecting investors. He noted that if registration becomes too costly or complex, it may push smaller crypto firms out of the market altogether.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot

Google rolls out AI to improve US power grid connections

Google has announced a partnership with PJM Interconnection, the largest electricity grid operator in North America, to deploy AI aimed at reducing delays in connecting new power sources to the grid. The move comes as energy demand surges due to the expansion of data centres required for AI development.

Wait times for connecting renewable and traditional energy sources, such as wind, solar and gas, have reached record levels, increasing the risk of blackouts and rising energy costs in the US. Google’s AI technology, developed alongside Alphabet-backed Tapestry, will streamline and automate key planning processes traditionally handled manually by grid operators.

Initial deployment will focus on automating tasks like assessing project viability, which are currently time-consuming. Over time, the project aims to create a digital model of PJM’s grid, similar to Google Maps, allowing planners to view layered data and make faster, more informed decisions.

While it is too early to quantify exactly how much time will be saved, the collaboration is expected to gradually improve planning efficiency. PJM’s grid serves 67 million people, including the world’s largest data centre hub in northern Virginia, making this a critical step toward modernising the energy infrastructure needed to support the AI era.

For more information on these topics, visit diplomacy.edu.

Google offers steep discounts to US federal agencies

Google is offering a 71% discount on its business apps package to US federal agencies as part of a new agreement with the General Services Administration (GSA).

The move is aimed at capitalising on President Trump’s cost-cutting efforts, which include reducing government contracts. If fully adopted by federal agencies, the deal could save up to $2 billion.

The pricing structure will now be based on government-wide usage, rather than the individual agency agreements that previously offered smaller discounts. The GSA views the agreement as part of its broader strategy to create cost savings for the federal government.

A shift like this could help Google expand its presence in the government sector, where Microsoft currently holds an 85% market share.

As part of its push, Google has enhanced its Workspace suite with AI-driven features from its Gemini model. The platform has already been used by some government entities, including the US Air Force’s Air Force Research Laboratory, since 2021.

For more information on these topics, visit diplomacy.edu.