"The adtech problems drew a monopolization case, and Google lost that one too. And though the remedy is still to come, few think Google will be fundamentally restructured.
And that’s a tragedy, because the shift to AI is perhaps more significant than the shift to mobile. As with the early search market, there are several companies offering foundational AI services, like OpenAI, Microsoft, Perplexity, Anthropic, DeepSeek, and so forth. The two key resources determining which model wins are, same as search before, data and distribution.
Google, as you’d expect, is repeating its search monopolization playbook with Gemini. It is self-preferencing Gemini across its lines of business, which is what it did with Android and search. It is cutting deals to insert Gemini into every major retail channel, which is analogous to its payments to phone makers to thwart rival search engines. Then there’s its deal with Apple, which is virtually identical to what Judge Mehta found to be the original Apple-Google arrangement enabling the illegal monopolization of the search market.
Mehta’s failure to impose a remedy was permission for Google to repeat this scheme with generative AI. And now it has. This deal will ensure that Google’s artificial intelligence chatbot product will become dominant in the most important mobile ecosystem in the world. And its experience structuring adtech markets suggest that if it mediates the entire economy, many tradition businesses will wind up like newspapers, eliminated as Google appropriates profit margins for itself and destroys the ability of consumers to differentiate products based on quality, innovation or other values. It could be an extinction level event for many commercial areas, like the death of the open web, and a dramatic narrowing of consumer choice."
https://www.thebignewsletter.com/p/will-google-organize-the-worlds-prices
#Google #AI #LLMs #AISearch #PriceFixing #Monopolies #Oligopolies #Competition #Antitrust
LeftyLabourTechToronto
Miguel Afonso Caetano
TinJar
TinJar