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.
Europe’s top court has ruled in favour of tech giants Google, Amazon, and Airbnb in their legal battle against an Italian regulation requiring them to disclose information about themselves. The dispute arose over provisions implemented in 2020 and 2021, which compelled online service providers operating in Italy to register and furnish various details, along with paying a financial contribution or facing penalties.
The companies contested this requirement, arguing that it contradicted the EU law, which stipulates that online service providers are subject only to the regulations of the country where they are established. The Court of Justice of the European Union (CJEU) in Luxembourg concurred, stating that member states cannot impose additional obligations on online service providers established in other EU countries.
The ruling has significant implications, with Google and Airbnb having their European headquarters in Ireland and Amazon in Luxembourg. Expedia, a US-based online travel services provider headquartered in Spain, also objected to the requirement. The CJEU’s decision, which is final and not subject to appeal, has far-reaching implications for cross-border online services within the EU.
Why does it matter?
This ruling underscores the importance of adhering to the EU laws and regulations regarding online services. It sets a precedent for maintaining consistency in regulations across member states and reinforces the principle of mutual recognition among EU countries. As technology continues to transcend borders, legal clarity and harmonisation are essential for fostering a conducive environment for digital innovation and commerce across Europe.
Google will invest $2 billion to establish its first data centre and Google Cloud region in Malaysia, marking a significant expansion into Southeast Asia. This investment will be located in Sime Darby Property’s Elmina Business Park in central Selangor. It aims to advance Malaysia’s digital ambitions, offering AI capabilities and other advanced technologies to enhance the local industry’s global competitiveness.
The new data centre will support services like Search, Maps, and Workspace, while the cloud centre will cater to local businesses and public sector organisations. Google’s Chief Financial Officer, Ruth Porat, emphasised the partnership’s role in fostering an ecosystem for innovation and driving digital transformation in Malaysia. This collaboration builds on a previous agreement announced last November between the Malaysian government and Google to accelerate domestic innovation.
The move is part of a broader trend of global tech giants’ significant investments in Southeast Asia. Microsoft has committed $2.2 billion to cloud services in Malaysia and $1.7 billion in Indonesia. Additionally, Malaysian conglomerate YTL is partnering with Nvidia in a $4.3 billion AI infrastructure project, while Amazon plans to invest $9 billion in Singapore, $5 billion in Thailand, and $6 billion in Malaysia.
Lobbying groups representing airlines, hotels, and retailers in Europe are urging the EU tech regulators to ensure that Google considers their views, not just those of large intermediaries, when implementing changes to comply with landmark tech regulations. These groups, including Airlines for Europe, Hotrec, EuroCommerce, and Ecommerce Europe, had previously expressed concerns about the potential impact of the EU’s Digital Markets Act (DMA) on their revenues.
The DMA aims to impose rules on tech giants like Google to give users more choice and offer competitors a fairer chance to compete. However, these industry groups fear the proposed adjustments could harm their direct sales revenues and exacerbate discrimination. In a joint letter to EU antitrust chief Margrethe Vestager and EU industry chief Thierry Breton, dated 22 May, they emphasised their mounting concerns regarding the potential consequences of the DMA.
Why does it matter?
Specifically, the groups worry that the proposed changes may give preferential treatment to powerful online intermediaries, resulting in a loss of visibility and traffic for airlines, hotels, merchants, and restaurants.
Despite Google’s acknowledgement in March that changes to search results may impact various businesses, including those in the European market, the company has not provided immediate comment on the recent concerns raised by these lobbying groups. The European Commission, currently investigating Google for possible DMA breaches, has yet to respond to requests for comment on the matter.
Google has announced the rollout of ‘AI Overviews’, previously known as the Search Generative Experience (SGE), marking a significant shift in how users experience search results. The following feature will provide AI-generated summaries at the top of many search results, initially for users in the US and soon globally. Liz Reid, Google’s head of Search, explained that the advancement simplifies the search process by handling more complex tasks, allowing users to focus on what matters most to them.
At the recent I/O developer conference, Google unveiled various AI-driven features to enhance search capabilities. These include the ability to search using video via Lens, a planning tool for generating trip itineraries or meal plans from a single query, and AI-organized results pages tailored to specific needs, like finding restaurants for different occasions. Google’s Gemini AI model powers these innovations, summarising web content and customising results based on user input.
Despite the extensive integration of AI, only some searches will involve these advanced features. Reid noted that simple searches like navigating a specific website won’t benefit from AI enhancements. However, AI can provide comprehensive and detailed responses for more complex queries.
Why does it matter?
Google aims to balance creativity with factual accuracy in its AI outputs, ensuring reliable information while maintaining a human perspective, especially valued by younger users. Google’s shift towards AI-enhanced search represents a broader evolution from traditional keyword searches to more dynamic and interactive user experiences. By enabling natural language queries and providing rich, contextual answers, Google seeks to make searching more intuitive and efficient. The approach not only aims to attract more users but also promises to transform how people interact with information online, reducing the need for extensive typing and multiple tabs.
Google has revealed plans to inject an additional $1.1 billion into its data centre campus expansion in Finland, emphasising its commitment to bolstering its AI business growth in Europe. The investment aligns with a broader trend of locating data centres in the Nordic region due to factors like the favourable climate, tax incentives, and abundant renewable energy sources.
While some Nordic countries have become more apprehensive about hosting data centres, Finland’s wind power capacity surge has left ample room for expansion. With a staggering 75% increase in wind power capacity in 2022 alone, Finland boasts a surplus of renewable energy, even witnessing negative pricing on windy days. Google secures its renewable energy needs through long-term contracts in Finland, ensuring sustainable operations for its data centres.
Why does it matter?
The exponential rise in AI usage is anticipated to drive a global power consumption surge for data centres. Google’s investment decision in Finland underscores its recognition of this trend, alongside its commitment to sustainability. Notably, Google’s Hamina data centre in Finland already operates with 97% carbon-free energy, with excess heat being redirected to the district heating network, benefiting local communities.
The investment is part of Google’s broader strategy to expand its data centre footprint in Europe, with recent announcements about new data centre constructions in the Netherlands and Belgium. Google’s ambitious sustainability goals aim for net-zero emissions across its operations and value chain by 2030, reflecting its proactive approach towards environmental responsibility and technological advancement.
Google’s deployment of AI to condense search results is causing publishers’ concern about potential website traffic declines. The update to Google’s search engine, recently announced, will introduce AI-generated summaries of online queries in the US, with plans to expand globally. The implementation of AI in Google browsers could diminish the significance of links and web pages for over a billion users, potentially reducing audiences for bloggers, news outlets, and other online content creators who rely on Google referrals.
The AI-generated summaries, produced by Google’s Gemini technology, will offer concise insights from various online sources with minimal links. Google claims the change will encourage users to explore a wider range of websites, but critics, including Marketing AI Institute CEO Paul Roetzer, anticipate negative impacts on publishers and advertisers. With little information Google provides about the implications for these stakeholders, uncertainty looms over the future of online visibility and revenue generation.
Jeff Jarvis, a professor at CUNY Graduate School of Journalism, suggests that news organisations with credible information could benefit from partnerships with AI giants. However, the advertising industry faces uncertainties, with Semasio CEO Jeff Ragovin warning of potential revenue losses and the need for better-targeted ads amidst the AI-driven search landscape.
Google has requested a non-jury trial in response to the US Justice Department’s lawsuit accusing the tech giant of anticompetitive practices in the online advertising market. The Justice Department, which filed the lawsuit in January 2023, claims Google has abused its dominance in digital advertising and should be forced to divest its ad manager suite.
Tech giant argues that the Justice Department’s request for a jury trial deviates from historical precedent, emphasising the complex technical nature of the case, which it believes would be challenging for a jury to understand. The Justice Department has not yet commented on Google’s filing.
Google’s online advertising network, including the ad manager, accounted for 12% of its revenue in 2021 and is integral to its overall sales, including its search engine and cloud services. Google contends that the Justice Department’s case exceeds the boundaries of antitrust law, asserting that these laws do not regulate the alleged conduct.
The Delhi High Court has directed Google and Microsoft to file a review petition seeking the recall of a previous order mandating search engines to promptly restrict access to non-consensual intimate images (NCII) without necessitating victims to provide specific URLs repeatedly. Both tech giants argued the technological infeasibility of identifying and proactively taking down NCII images, even with the assistance of AI tools.
The court’s order stems from a 2023 ruling requiring search engines to remove NCII within 24 hours, as per the IT Rules, 2021, or risk losing their safe harbour protections under Section 79 of the IT Act, 2000. It proposed issuing a unique token upon initial takedown, with search engines responsible for turning off any resurfaced content using pre-existing technology to alleviate the burden on victims of tracking and repeatedly reporting specific URLs. Moreover, the court suggested leveraging hash-matching technology and developing a ‘trusted third-party encrypted platform’ for victims to register NCII content or URLs, shifting the responsibility of identifying and removing resurfaced content away from victims and onto the platform while ensuring utmost transparency and accountability standards.
However, Google expressed concerns regarding automated tools’ inability to discern consent in shared sexual content, potentially leading to unintended takedowns and infringing on free speech, echoing Microsoft’s apprehension about the implications of proactive monitoring on privacy and freedom of expression.
OpenAI is gearing up to unveil its AI-powered search product, intensifying its rivalry with Google in the realm of search technology. The announcement, slated for Monday, comes amidst reports of OpenAI’s efforts to challenge Google’s dominance and compete with emerging players like Perplexity in the AI search space. While OpenAI has remained tight-lipped about the development, industry insiders anticipate a big step in the AI search landscape.
The timing of the announcement, just ahead of Google’s annual I/O conference, suggests OpenAI’s strategic positioning to capture attention in the tech world. Building on its flagship ChatGPT product, the new search offering promises to revolutionise information retrieval by leveraging AI to extract direct information from the web, complete with citations.
Why does it matter?
Despite ChatGPT’s initial success, OpenAI has faced challenges sustaining user growth and relevance during the chatbot’s evolution. The retirement of ChatGPT plugins in April indicates the company’s engagement to refine its offerings and adapt to user needs.
As OpenAI aims to expand its reach and enhance its product capabilities, the launch of its AI search product marks a breakthrough in its quest to redefine information access and reshape the future of AI-driven technologies.
