Importance Score: 65 / 100 🔴
Testimony presented this week during Google’s antitrust trial revealed that the tech giant provides Samsung with a considerable monthly payment to pre-install the Gemini AI application on Samsung devices. Following Judge Amit Mehta’s determination that Google’s search engine constitutes an unlawful monopoly, legal representatives from both sides are debating the severity of potential penalties. This case highlights the increasing scrutiny on Google’s AI app dominance and the impact on competition within the tech sector.
Google’s Payments to Samsung for Gemini Pre-Installs
Details of the Agreement
Peter Fitzgerald, Google’s VP of platforms and device partnerships, testified that these payments to Samsung commenced in January. This arrangement emerged after Google was found to have infringed antitrust regulations, partly due to similar agreements concerning search functionalities with Apple, Samsung, and other enterprises.
Gemini Integration on Galaxy S25
Upon the launch of the Galaxy S25 series in January, Samsung integrated Gemini as the default AI assistant, activated by a long press of the power button, effectively relegating its own Bixby assistant. In essence, pre-installing Gemini became standard.
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Other Companies’ Proposals
Fitzgerald testified that other companies, including Perplexity and Microsoft, had also approached Samsung with proposals to pre-install their respective AI assistant apps. However, the DOJ highlighted that Google’s letters seeking to amend its agreements with phone manufacturers were submitted only recently, just before the trial.
Consideration of Restrictive Agreements
Internal documents presented at the hearing indicated that Google contemplated enforcing “more restrictive distribution agreements” requiring partners to pre-install Gemini alongside Search and Chrome.
Financial Aspects of the Gemini Deal
Fixed Payments and Revenue Sharing
According to reports, the Gemini arrangement is a two-year agreement. Beyond the consistent monthly payments, Google also provides Samsung with a fraction of the Gemini app’s subscription revenue. DOJ lawyer David Dahlquist described the fixed monthly payment as a “substantial sum”, though the exact amount remains undisclosed.
DOJ Seeks to Limit Google’s Dominance
If the DOJ prevails, the case’s outcome could prevent Google from securing default placement agreements in the future. Furthermore, Google might be required to divest Chrome and license the vast quantity of data underpinning Google Search.
Potential Remedies and Google’s Defense
Possible Restrictions on Google
- Prohibition of default placement deals
- Divestiture of Chrome
- Mandatory licensing of Google Search data
Google’s Counter-Arguments
Google maintains that it should only be compelled to relinquish default placement agreements. The dispute underscores the struggle to regulate the influence of powerful AI app ecosystems.