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Google faces new remedies in US DOJ antitrust case

The US Department of Justice plans to outline by December the steps Alphabet’s Google must take to restore competition after being found guilty of illegally monopolising the online search market. Prosecutors have not revealed specific remedies but indicated that their proposal would be comprehensive and consider Google’s plans to integrate AI into its search operations, including rebranding its AI product to Gemini.

Potential actions include requiring Google to divest certain business units, such as its Android operating system, or stopping billions in payments to ensure its search engine remains the default on devices and browsers. Google’s legal team argued that they need a detailed proposal from prosecutors to prepare a response, possibly involving information from AI rivals like Microsoft and OpenAI.

Google has said it plans to appeal the ruling, and US District Judge Amit Mehta suggested a possible hearing in the spring, with a final decision expected by next August.

Google faces competition scrutiny over Android Auto app block

Google’s refusal to include Enel’s e-mobility app, JuicePass, on its Android Auto platform may violate competition rules, according to an adviser to Europe’s top court. The Italian antitrust authority previously fined Google €102 million ($113.2 million) in 2021 for blocking the app, which helps drivers navigate and manage messages from their dashboards.

Court Advocate General Laila Medina supported Italy’s stance, arguing that Google’s actions could breach competition laws by unfairly excluding third-party apps and harming consumers. Google had cited security concerns and the lack of a specific template for the app, but it has since taken steps to address these issues, adding the necessary template for compatibility with Android Auto.

The Court of Justice of the European Union (CJEU) will make the final decision, which is expected to rule in the coming months. Google has stated it is working to resolve the issue and is already offering similar apps globally on Android Auto.

Google’s new proposals under EU antitrust review

European Union regulators will gather feedback next week on Google’s latest proposals to comply with competition rules aimed at curbing the dominance of Big Tech. The process could determine whether formal charges will be brought against the company.

The European Commission initiated an investigation in March to examine whether Google unfairly favours its own vertical search services, including Google Shopping, Flights, and Hotels, over rivals. Competitors have raised concerns that Google has not fully complied with the EU’s Digital Markets Act (DMA), which seeks to level the playing field for smaller competitors.

In response, Google has offered a proposal that would display a separate box for competitors below its product listings in search results. It also suggested adding two adjacent boxes to show intermediaries alongside direct suppliers like airlines and hotels. Regulators will hold workshops in September to hear from stakeholders, though Google will not participate.

Failure to address the regulators’ concerns could result in formal charges and a potential fine of up to 10% of Google’s global annual turnover. Google stated that it will continue to engage with the European Commission and the industry in the coming months.

Google faces antitrust trial in US over ad dominance

Google is set to face a critical antitrust trial as the US Department of Justice targets the tech giant’s advertising practices, accusing the company of using its dominance to stifle competition and harm news publishers. The legal case will be heard in Alexandria, Virginia, and marks another important move in the Biden administration’s broader campaign to curb the influence of Big Tech through the enforcement of antitrust laws.

The trial will scrutinise Google’s less-visible but highly lucrative adtech system, which connects advertisers with website publishers and accounted for over 75% of Google’s $307.4 billion in revenue last year. While the Justice Department recently won against Google in a separate case concerning the company’s search engine monopoly, this new trial will delve into how Google allegedly maintains a ‘privileged position’ as the dominant middleman in the digital advertising market.

Prosecutors and a coalition of states argue that Google’s dominance in adtech is due to its strategy of tying together tools for advertisers and publishers, effectively controlling critical parts of the advertising ecosystem. They claim Google controls 91% of the ad server market, over 85% of ad networks, and more than half of the ad exchange market, making it nearly impossible for competitors to gain a foothold. Google, however, disputes these figures, arguing that when broader markets like social media and streaming are considered, its market share is significantly lower.

It is expected to feature testimony from key players in the advertising industry and executives from major news organisations that have felt the impact of Google’s practices. The Justice Department will likely argue that the consolidation of the digital advertising market, primarily driven by Google, has contributed to the decline of journalism, with one-third of US newspapers closing or being sold since 2005.

On the other hand, Google is expected to defend its business practices by highlighting its tools’ benefits to small businesses and publishers, arguing that a breakup would stifle innovation and harm these smaller players. The company has lined up witnesses to support this narrative, including current and former executives, such as YouTube CEO Neal Mohan, who played a significant role in developing Google’s adtech.

Google invests in second Latin American data centre in Uruguay

Google will establish its second data centre in Latin America in Canelones, Uruguay, investing more than $850 million in the project. The investment comes after the success of Google’s first Latin American data centre, which was opened in Quilicura, Chile, in 2015 and later expanded.

The tech giant expressed hopes that the new facility will significantly contribute to the professional and technological development of both Uruguay and the wider region. The new investment reinforces Google’s ongoing commitment to expanding its global data infrastructure.

In addition to the Canelones centre, Google is reportedly planning a ‘hyperscale’ data centre in Vietnam, which is expected to be operational by 2027. The company has also announced major investments in other regions, including $3 billion for a data centre campus in Indiana, the USA, and $2 billion to establish its first data centre and Google Cloud region in Malaysia.

Google plans data centre expansion in Vietnam

Google is weighing plans to build its first large-scale data centre in Vietnam near Ho Chi Minh City. The project, still under internal discussion, would make Google the first major US tech firm to invest in such infrastructure in the country. A decision has yet to be finalised, but the data centre could be operational by 2027.

Vietnam‘s developing digital economy and the increasing demand for cloud services and YouTube content drive Google’s interest in the region. Despite this, the country has historically struggled to attract large tech investments due to its unreliable power grid, outdated infrastructure, and less favourable regulations. However, recent reforms have opened up opportunities for foreign ownership.

Vietnam lags behind neighbouring Southeast Asian countries like Singapore, Malaysia, and Thailand, which have successfully attracted significant data centre investments. Google’s planned facility would be one of the largest in the industry, potentially consuming as much power as a small city. Estimates suggest such a centre could cost up to $650 million.

As part of its broader growth strategy in Vietnam, Google has already opened a representative office and is hiring staff locally. It also launched initiatives such as offering AI scholarships and supporting startups, reflecting its deepening commitment to the country’s digital transformation.

BigCommerce partners with Google for AI-powered platform upgrades

BigCommerce is bolstering its AI capabilities through collaboration with Google, aiming to enhance online store performance and drive customer growth. The Austin-based company introduced a suite of new AI-focused solutions during its recent product launch, including tools for personalised product recommendations and AI-generated quote proposal emails, with plans for more features like semantic search and predictive analytics.

These enhancements build on BigCommerce’s partnership with GoogleCloud’s AI technology, which was formed about a year ago. The company is positioning itself against competitors like Shopify and Amazon, which have also integrated AI to improve their platforms. BigCommerce believes these updates will benefit merchants significantly, particularly in terms of efficiency and customer experience.

Despite a challenging journey since going public in 2020, BigCommerce is making substantial investments in AI, and it is already showing positive results. Recent earnings reports indicate an 11% increase in revenue, driven partly by the success of these AI tools, and a reduction in net losses compared to the previous year.

The company remains optimistic that its AI strategy will pay off, helping it compete more effectively in e-commerce. BigCommerce is committed to providing merchants with various AI-powered tools, enabling them to choose the best solutions for their unique needs.

Google’s $250M deal to support California newsrooms

Google has entered a $250 million deal with the state of California to support local newsrooms, which have been struggling with widespread layoffs and declining revenues. The decision comes in the wake of proposed legislation that would have required tech companies to pay news providers when they run ads alongside news content. By securing this deal, Google has managed to sidestep such bills.

The Media Guild of the West, a local journalism union, has criticised the deal, calling it a ‘shakedown’ that fails to address the real issues plaguing the industry. They argue that the deal’s financial commitments are minimal compared to the wealth tech giants have allegedly ‘stolen’ from newsrooms.

The deal includes the creation of the News Transformation Fund, supported by Google and taxpayers, which will distribute funds to news organisations in California over five years. Additionally, the National AI Innovation Accelerator, funded by Google, will support various industries, including journalism, by exploring the use of AI in their work.

While some, including California Governor Gavin Newsom, have praised the initiative, others remain sceptical. Critics argue that the deal needs to be revised, pointing out that only Google contributes financially, with other tech giants like Meta and Amazon absent from the agreement.

The news industry’s challenges are significant, with California seeing a sharp decline in publishers and journalists over the past two decades. Big Tech’s dominance in the advertising market and its impact on publisher traffic have exacerbated these challenges, leading to calls for more robust solutions to sustain local journalism.

Recover hacked YouTube channels with Google’s AI Tool

Google has introduced a new AI-powered chat assistant to help YouTube creators recover hacked accounts. Currently, in testing, the tool is accessible to select users and aims to guide them through securing their accounts. The AI assistant will assist affected users by helping them regain control of their login details and reverse any changes made by hackers. Presently, the feature supports only the English language, but there are plans to expand its availability.

To use the new tool, users must visit the YouTube Help web page and log into their Google Account. They will then find the option to ‘Recover a hacked YouTube channel’ under the Help Centre menu. This new option opens a chat window with the AI assistant, who will guide them through securing their accounts.

Google’s latest innovation reflects its ongoing commitment to enhancing user security. Although the tool is in its early stages, efforts are being made to make it available to all YouTube creators.

As cyber threats evolve, Google’s AI assistant represents an important step forward in providing robust security solutions. The initiative shows the company’s dedication to protecting its users’ online presence.

New appointment at Google’s AI division

Google has appointed Noam Shazeer, a former Google researcher and co-founder of Character.AI, as co-lead of its main AI project, Gemini. Shazeer will join Jeff Dean and Oriol Vinyals in overseeing the development of AI models at DeepMind, Google’s AI division, which are set to enhance products like Search and Pixel smartphones.

Shazeer rejoined Google after founding Character.AI in 2021. The tech giant secured his return by paying billions and striking a licensing agreement with his former company. Shazeer expressed excitement in a memo to staff, praising the team he has rejoined.

Originally joining Google in 2000, Shazeer was instrumental in the 2017 research that ignited the current AI boom. Character.AI, which leverages these advancements, has attracted significant venture capital, reaching a $1 billion valuation last year.

Google’s decision to bring Shazeer back echoes similar strategies by other tech giants, although these moves have drawn regulatory scrutiny. In related news, a US judge recently ruled that Google’s search engine violated antitrust laws by creating an illegal monopoly.