Google

Google’s bid to end US antitrust case over digital advertising rejected

Google has lost its bid to dismiss a US government lawsuit accusing it of monopolistic practices in the digital advertising market in an ongoing antitrust scrutiny of major tech companies. The ruling marks a critical juncture in the broader effort to regulate and curtail the market power of tech giants. US District Judge Leonie Brinkema in Alexandria, Virginia, denied Google’s motion to dismiss the case during a recent hearing, as documented in court records.

The decision allows the lawsuit, originally filed by the Department of Justice (DOJ) in January 2023, to proceed. The DOJ alleges that Google has engaged in anti-competitive behavior to maintain its dominance in the digital advertising market, using its position to unfairly disadvantage competitors, violating Section 2 of the Sherman Antitrust Act. The lawsuit is part of a broader wave of antitrust actions targeting Big Tech, as regulators aim to address concerns over market monopolization and its effects on competition, consumers, and innovation. According to the DOJ, Google has employed various strategies to stifle competition, including acquiring competitors, favoring its own services, and implementing restrictive policies that disadvantage rival ad tech firms.

Last week, Google achieved a notable victory when Judge Brinkema allowed the trial to proceed without a jury, following a settlement of claims that its conduct harmed the US government. Judge Brinkema is scheduled to preside over the trial on September 9. In response to the ruling, a Google spokesperson expressed disappointment, stating that the company strongly disagrees with the DOJ’s claims and plans to vigorously defend itself in court. Google maintains that its digital advertising products benefit publishers and advertisers by providing efficient, effective tools that foster competition.

Why does it matter?

The outcome of this case could have implications for the tech industry, particularly for digital advertising. If the court ultimately rules against Google, it could lead to significant changes in how digital advertising markets operate, potentially requiring Google to divest parts of its advertising business or change its business practices. The case against Google is pivotal to the ongoing debate over the power and influence of tech giants. It reflects increasing regulatory scrutiny and a shift towards more aggressive antitrust enforcement.

The ruling not only impacts Google but also sets a precedent for future actions against other major players in the tech industry. As the case moves forward, it will be closely watched by industry stakeholders, policymakers, and consumers alike, as it holds the potential to reshape the digital advertising ecosystem and redefine the boundaries of acceptable business practices for tech companies.

Austrian advocacy group NOYB accuses Google of tracking users 

Alphabet’s Google has been hit with a complaint by the Austrian advocacy group NOYB (None Of Your Business) over alleged browser tracking. The complaint, filed with the Austrian data protection authority, claims that Google’s ‘Privacy Sandbox’ feature, which is designed to protect user privacy by blocking covert tracking techniques and limiting data sharing with third parties, actually allows Google to track users within the browser without their informed consent.

NOYB argues that the feature, which is advertised as an improvement over third-party tracking cookies, is misleading and does not meet the requirements for free consent under the EU’s General Data Protection Regulation (GDPR). The group claims that users are tricked into accepting Google’s first-party ad tracking by being presented with a pop-up that says ‘turn on ad privacy feature,’ which they believe would protect their personal data. However, this feature actually enables Google to track users’ online behavior and generate a list of advertising topics based on their browsing history.

NOYB has asked the Austrian data protection authority to ensure Google’s GDPR compliance, halt data processing based on invalid consent, and inform data recipients to stop using this data. They also seek a substantial fine to deter future violations, emphasizing the importance of GDPR adherence. Google defends its Privacy Sandbox APIs, highlighting significant privacy enhancements over third-party cookies. The company states it is working closely with global regulators on a balanced solution beneficial to users and the ecosystem.

Google teams up with NV Energy to boost geothermal power for Nevada data centres

Google has announced a partnership with NV Energy, a Berkshire Hathaway electric utility, to significantly increase the use of geothermal energy to power its Nevada data centers. The agreement, pending approval from state utility regulators, is a major step in Google’s mission to operate entirely on clean energy by 2030. The deal will enhance Google’s use of carbon-free geothermal electricity from 3.5 megawatts to 115 megawatts within six years. NV Energy will collaborate with Fervo Energy, an advanced geothermal developer, which has been supplying Google with geothermal power since 2021. That partnership includes developing a new rate structure called the Clean Transition Tariff, designed to facilitate similar agreements in other regions.

The deal comes as tech giants like Google, Amazon, and Microsoft seek sustainable energy sources to power their growing data centers, which are essential for supporting technologies such as AI and cloud computing. Currently, 64% of Google’s global operations are powered by carbon-free energy, with a focus on wind and solar. However, geothermal energy provides a more reliable alternative, as it is not dependent on weather conditions. The partnership with NV Energy represents a new approach for companies with significant and growing electricity demands to achieve their climate goals within regulated power markets. In these markets, companies must purchase power from the local utility rather than directly from a power generator, complicating efforts to secure entirely clean energy sources. Duke Energy, which operates in regulated states, announced a similar agreement with Google, Microsoft, and Amazon recently.

Geothermal energy, which harnesses naturally occurring underground heat to produce renewable electricity, accounts for about 10% of Nevada’s total electricity generation, the highest proportion of any U.S. state, according to the Energy Information Administration. Google’s collaboration with NV Energy and Fervo Energy demonstrates a strategic move towards more sustainable and reliable energy sources, contributing to the broader effort of reducing carbon emissions and combating climate change.

Why does it matter?

  • Environmental Impact: By significantly increasing its use of geothermal energy, Google is reducing its carbon footprint and advancing its goal of operating on entirely clean energy by 2030.
  • Energy Reliability: Geothermal energy provides a stable and continuous power source, unlike wind and solar, which are weather-dependent.
  • Industry Leadership: The partnership sets a precedent for other companies to follow, promoting innovative approaches to achieving clean energy goals in regulated power markets.
  • Economic Benefits: Developing geothermal energy projects can boost local economies, create jobs, and enhance the energy infrastructure in Nevada.

Google emerges as a winner alongside Open AI at WWDC 2024

Two partnerships were unveiled at Apple’s yearly Worldwide Developer Conference on Monday; one on stage and one in the fine-print. A partnership with OpenAI to use GPT 4.0 within Siri’s Apple Intelligence was openly publicised, but use of Google chips to build the AI tools was not. 

Initially, it would seem as though the two companies are at odds. Apple would be set to compete with Google’s Gemini over their AI systems, while the OpenAI partnership could potentially mean reduced access to customer data through Siri.  

However, a technical document published by Apple after the event reveals that in order to build their AI models, Apple used its own framework software. This software depended on various pieces of Apple’s own hardware, but also tensor processing chips (TPCs). These are exclusively available for purchase through Google’s cloud. Google is among various companies competing with Nvidia’s AI-capable chips, which have been dominating the market recently. 

Apple did not immediately reply after Reuters requested comment. It has not detailed how much it depends on third-party chips for the development of its new AI system.

Google tests AI anti-theft feature for phones in Brazil

Alphabet’s Google announced that Brazil will be the first country to test a new anti-theft feature for Android phones, utilising AI to detect and lock stolen devices. The initial test phase will offer three locking mechanisms. One uses AI to identify movement patterns typical of theft and lock the screen. Another allows users to remotely lock their screens by entering their phone number and completing a security challenge from another device. The third feature locks the screen automatically if the device remains offline for an extended period.

These features will be available to Brazilian users with Android phones version 10 or higher starting in July, with a gradual rollout to other countries planned for later this year. Phone theft is a significant issue in Brazil, with nearly 1 million cell phones reported stolen in 2022, marking a 16.6% increase from the previous year.

In response to the rising theft rates, the Brazilian government launched an app called Celular Seguro in December, allowing users to report stolen phones and block access via a trusted person’s device. As of last month, approximately 2 million people had registered with the app, leading to the blocking of 50,000 phones, according to the Justice Ministry.

Turkey fines Google $14.85 million over hotel searches

The Turkish competition authority has fined Google approximately 482 million lira ($14.85 million) for not meeting obligations related to hotel searches. The fine stems from Google’s failure to address the authority’s concerns regarding fair competition with local search engines.

The decision highlights ongoing issues with Google’s compliance with competition laws in various countries. The competition board in Turkey aims to ensure a level playing field for local businesses in the digital marketplace.

Google has faced similar scrutiny and penalties in other regions, emphasising the global nature of regulatory challenges confronting major tech companies. The fine reinforces Turkey’s commitment to enforcing fair competition practices within its digital economy.

Google settles allegations of digital advertising dominance in US, avoids jury trial

Alphabet’s Google will avoid a jury trial over allegations of digital advertising dominance after paying $2.3 million to settle the US government’s monetary damages claim. The payment means the case, involving non-monetary demands, will be heard directly by a judge. Initially, the Justice Department and several states had sued Google, accusing it of monopolising digital advertising and overcharging users, seeking primarily to break up its advertising business.

US District Judge Leonie Brinkema scheduled the non-jury trial for 9 September, where she will directly hear arguments and decide the case. Google criticised the Justice Department’s damages claim as contrived, denying any wrongdoing and not admitting liability by making the payment. A Justice Department spokesperson declined to comment on the matter.

The Justice Department initially claimed more than $100 million in damages but later reduced the demand to less than $1 million. Google’s $2.3 million payment covers the interest and potential tripling of damages under US antitrust law. Google accused the government of inflating its damages claim to secure a jury trial, while the government contended that Google has worked to keep its anticompetitive conduct hidden from public scrutiny.

Google faces £13.6 billion lawsuit in UK over alleged Ad market dominance

London’s Competition Appeal Tribunal ruled that Google’s parent company, Alphabet, must confront a lawsuit worth up to £13.6 billion ($17.4 billion) for purportedly exploiting its position in the online advertising sector. The lawsuit, filed by Ad Tech Collective Action on behalf of UK-based publishers, accuses Google of anti-competitive practices that have led to publishers’ financial losses.

Despite Google’s efforts to block the case, arguing it lacked coherence and denying the allegations, the CAT certified the lawsuit to proceed towards a trial, expected no sooner than the end of 2025. The tribunal emphasised that the threshold for certifying such cases under the UK’s collective proceedings regime is relatively low.

Why does it matter?

The legal measure adds to the scrutiny Google is facing globally regarding its adtech practices. Regulators in the UK and Europe are investigating Google’s adtech business, while in the US, the company is battling lawsuits from the Department of Justice and several states over alleged anti-competitive behaviour.

Google’s legal team contends that its impact on the ad tech industry has been positive, fostering competition. However, the CAT’s decision marks another setback for a tech giant, following recent rulings allowing cases against Meta and Apple to proceed.

Google to lay off approximately 100 employees in cloud unit

Google, a subsidiary of Alphabet, reportedly plans to lay off around 100 employees from several teams in its cloud unit. The affected roles include those in sales, operations, engineering, consulting, and ‘go to market’ strategy. The information citing internal correspondence as the source was provided in the report.

A spokesperson for Google stated that the company is constantly evolving its business to align with customer priorities and to capitalise on significant opportunities. They emphasised Google’s commitment to investing in critical areas that are necessary for long-term success.

Why does it matter?

These layoffs are part of the company’s ongoing efforts to cut costs. In April, Google implemented unspecified staff reductions across various teams. The management move was followed by hundreds of layoffs in January, reflecting a broader trend of job cuts in the tech and media industry due to economic uncertainty.

Google’s investment in Singapore’s tech infrastructure hits $5 billion mark

Alphabet’s Google announced the completion of its data centre and cloud facilities expansion in Singapore, marking a total investment of $5 billion in the nation’s technical infrastructure. This substantial investment underscores Google’s commitment to enhancing its services in Southeast Asia. The expanded data centres, which employ over 500 people, are crucial for powering essential services like Google Search and Maps.

In addition to its efforts in Singapore, Google revealed plans last week to invest $2 billion in Malaysia to establish its first data centre in the country. The expansion into Malaysia signifies Google’s broader strategy to bolster its presence and capabilities across Southeast Asia, aiming to support the growing demand for digital services and infrastructure.