As Google‘s trial on allegations of monopolising the advertising technology market draws to a close, experts believe the financial risk to the tech giant is minimal. The US Department of Justice (DOJ) and a coalition of states accuse Google of illegally controlling the markets used by advertisers and publishers to buy and sell online ads. However, analysts point out that the ad tech business at the centre of the trial, Google Network, is declining and represents a smaller portion of the company’s overall revenue compared to its dominant search business.
In 2023, advertising made up over 75% of Google’s $307.4 billion revenue, though the Network division, which is central to the DOJ case, contributed just $31.4 billion. The DOJ is pushing for the divestiture of Google Ad Manager, but analysts believe that even if Google loses, the financial impact would be small, with revenue losses potentially under 10%. Google has defended itself by highlighting strong competition from other platforms, especially in mobile apps and streaming ads, which could undermine the DOJ’s argument.
The more significant worry for Google lies in the potential consequences of a ruling in favour of the DOJ, as it could facilitate easier transitions for advertisers and publishers between platforms. A successful case might establish a legal precedent that holds tech companies accountable for monopolistic practices. However, the overall impact will hinge on the trial’s outcome and the remedies the court proposes in the upcoming months.
Alphabet Inc.’s Google has announced a $1 billion investment in Thailand to establish a data centre and cloud region, aimed at meeting the increasing demand for cloud services and supporting AI adoption in Southeast Asia. This investment is projected to create approximately 14,000 jobs annually until 2029, according to a Deloitte study.
Google’s new cloud and data centre infrastructure will be situated in Chonburi and Bangkok, respectively, improving access to Google Cloud capabilities and AI innovations while also supporting popular services like Search, Maps, and Google Workspace. This announcement follows Microsoft’s launch of its own regional data centre in Thailand in May, aimed at expanding cloud services in the region.
Thai Prime Minister Paetongtarn Shinawatra praised Google’s investment, stating that it aligns well with the country’s Cloud First Policy, which promotes the adoption of cloud technologies across various sectors.
Germany’s competition watchdog has designated Microsoft as a ‘company with paramount cross-market significance for competition,’ allowing for stronger regulatory actions against the tech giant. Andreas Mundt, head of the Bundeskartellamt, emphasised that Microsoft’s products are essential across various sectors, making its ecosystem more interconnected than ever.
This classification also extends to Apple, Google, and Meta, indicating that Microsoft will undergo heightened scrutiny and may face restrictions on anti-competitive practices. A spokesperson for Microsoft expressed the company’s commitment to promoting a competitive environment and working cooperatively with the Bundeskartellamt.
The designation follows antitrust charges against Microsoft by the European Commission in June, which accused the company of unfairly bundling its Teams app with the Office suite, putting rivals like Slack at a disadvantage. The German authority clarified that its increased oversight will apply to Microsoft as a whole, rather than focusing solely on individual services or products.
Google has restricted the creation of new accounts for Russian users, according to Russia‘s digital ministry. The move follows mounting pressure on the tech giant over its failure to remove content deemed illegal by Moscow and for blocking Russian media channels on YouTube following the invasion of Ukraine. Telecom operators have also reported a sharp decline in the number of SMS messages sent by Google to Russian users.
The digital ministry warned there is no guarantee that two-factor authentication SMS confirmations will continue functioning for Google services. It advised users to back up their data and consider alternative authentication methods or domestic platforms. Google had already deactivated AdSense accounts in Russia in August and halted serving ads in the country in March 2022.
Google has blocked over 1,000 YouTube channels linked to state-sponsored Russian media, as well as more than 5.5 million videos. Slower speeds on YouTube in Russia have been recorded recently, with Russian lawmakers blaming the issue on Google’s equipment, a claim the company disputes.
A federal judge has scaled down a privacy lawsuit against Apple, which alleged the company collected personal data from iPhone, iPad, and Apple Watch users without permission. The lawsuit targets Apple’s apps, including the App Store, Apple Music, and Apple TV. US District Judge Edward Davila dismissed most claims involving the “Allow Apps to Request to Track” setting, clarifying that it only governs data collection by third-party apps and websites, not Apple’s in-house apps.
Despite dismissing many claims, the judge allowed some to proceed related to Apple’s ‘Share [Device] Analytics’ setting. The plaintiffs claim that Apple continued collecting data even after users disabled the setting, despite promises that it would stop data sharing. Judge Davila agreed, noting that users could reasonably assume they had withdrawn consent based on Apple’s own disclosure that disabling the option would prevent data collection.
This lawsuit is part of a broader trend of legal actions against major tech companies like Google and Meta, accusing them of gathering user data without proper consent. Neither Apple nor the plaintiffs’ lawyers have responded to requests for comment on the case as it unfolds.
Alphabet plans to invest $3.3 billion in South Carolina to establish two new data centres, according to CEO Sundar Pichai. This investment comes as the Google parent company and its competitors significantly enhance their infrastructure to support the growth of AI applications. The new data centre campuses will be located in Dorchester County, alongside an expansion of an existing facility in Berkeley County, as confirmed by the South Carolina governor’s office.
The new facilities in Dorchester County, located in the Pine Hill Business Campus in Ridgeville and Winding Woods Commerce Park in St. George, represent a $2 billion investment and are anticipated to create 200 operational jobs. Additionally, the expansion in Berkeley County will require another $1.3 billion investment. In July, Alphabet reported capital expenditures of $13 billion for the June quarter and indicated that spending would remain at or above $12 billion for the rest of 2024.
This announcement comes on the heels of Microsoft’s recent partnership with BlackRock and the Abu Dhabi-backed investment firm MGX to establish a fund exceeding $30 billion, focused on developing AI infrastructure, including the construction of data centres and energy projects.
Google has introduced a major update to its AI-powered note-taking platform, NotebookLM. Users will soon be able to upload YouTube URLs and audio files, such as mp3 and wav formats, for analysis by the Gemini AI.
Previously, NotebookLM allowed users to interact with documents like Google Docs, PDFs, and web pages. Now, a new sharing feature enables public URL generation for Audio Overviews, enhancing collaboration.
NotebookLM’s latest features position it as a strong rival to Microsoft OneNote’s Copilot and Notion AI. Gemini is also integrated into Google Workspace, offering business customers enterprise-grade data protection.
Google has partnered with Volkswagen to provide key artificial intelligence capabilities for a new in-app assistant designed to assist drivers. The AI-powered assistant, available through a smartphone app, allows users to ask questions or point their cameras at vehicle dashboards for immediate, relevant information.
The assistant uses Google’s Gemini large language models, which are capable of processing and generating predictive responses based on human language. The tool was developed by incorporating Volkswagen manuals and YouTube videos related to vehicle maintenance into the AI’s database.
Google Cloud CEO Thomas Kurian highlighted the complexity of the project, explaining that it goes beyond simple speech-to-text translation. The AI’s multimodal capabilities, which process text, images, and videos, were essential to its development.
Currently available to around 120,000 Volkswagen Atlas and Atlas Cross Sport owners, the assistant will roll out to more models by next year. Google aims to expand its enterprise AI solutions through ventures like this, particularly as cloud computing continues to grow as a key segment of its business.
Google has filed a formal complaint with the European Commission over Microsoft’s cloud business practices. The tech giant argues that Microsoft uses its dominant position with Windows Server to stifle competition and lock customers into its Azure platform. Specifically, Google claims Microsoft enforces heavy mark-ups on users of rival cloud services and restricts access to essential security updates.
The dispute follows a recent settlement where Microsoft paid €20 million to resolve concerns raised by European cloud providers. However, the agreement excluded key rivals like Google and Amazon Web Services (AWS), fuelling further criticism. Google insists only regulatory action will halt what it sees as Microsoft’s monopolistic approach, urging the EU to step in and ensure fair competition.
Microsoft denies the accusations, stating they have settled similar issues amicably with other European providers. A Microsoft spokesperson expressed confidence that Google would fail to persuade the European Commission, as it had failed with EU businesses.
Google believes immediate intervention is necessary to prevent the cloud market from becoming increasingly restrictive. They warn that Microsoft’s influence over the European cloud sector, which is growing rapidly, could limit options for customers and hurt competitors.
Several global players, including Google, Norway’s sovereign wealth fund, and UBS, have teamed up to support a bid to manage the UK’s upcoming real-time bond tape system. The bond tape is designed to consolidate market data, allowing investors greater transparency in bond transactions. This initiative is expected to enhance the UK’s capital markets and provide better visibility of the best deals.
The bond trading market, often fragmented, has seen limited price transparency due to its bilateral nature. A bond tape system, long used on Wall Street, could bridge this gap, helping market participants by offering a clear data feed. British regulators plan to begin the tendering process to select a company to operate this system by the end of 2024, with the expectation of it being fully functional by 2026.
Ediphy, a technology firm in London specialising in fixed income markets, has taken the lead in the effort. Collaborating with key partners like Cboe Global Markets, FactSet, and TP ICAP, Ediphy’s goal is to ensure the system is transparent and fair. Google Cloud could also play a crucial role by storing the system’s data.
While many in the financial sector back the bond tape initiative, exchanges remain hesitant, fearing the impact on their profitable data streams. Ediphy’s CEO, Chris Murphy, stressed that it’s essential to create a balanced and affordable system to avoid delays in its implementation.
