DOJ Drops Proposal for Google to Divest AI Investments
The US Department of Justice (DOJ) dropped a proposal requiring Alphabet's Google to divest its stakes in artificial intelligence (AI) firms, including the OpenAI rival Anthropic, on March 10th. The action is part of the DOJ's ongoing antitrust lawsuit to combat Google's search monopoly.
However, despite this change, the DOJ and 38 state attorneys general are still seeking a court order that would require Google to divest its Chrome browser and take other actions designed to address its alleged illegal dominance in the online search market.
Prosecutors Stress Importance of Market Freedom and Competition
In their submissions, the prosecutors highlighted that the American dream is not only about low-cost commodities and free online products. They argued that we must preserve and protect values like freedom of speech, innovation, association, and fair market competition. The DOJ position continues to be centered on opposing Google's monopolistic behavior.
A Google official told Reuters that the DOJ's suggestions would go beyond the court order and hurt consumers, the economy, and security. The firm has signaled its plans to appeal the ruling.
Google’s Stake in Anthropic and Potential Consequences
Google has a substantial minority ownership in Anthropic, a rival to OpenAI. If Google is required to sell this stake, it may lose a competitive advantage, which might benefit OpenAI and Microsoft. In February, Anthropic filed a statement to the court warning that such a decision could impact the competitive dynamics in the AI space.
Focus on Google’s Future AI Investments
According to Reuters, following evidence obtained since November, the DOJ has modified its stance on Google’s AI investments. The department now seeks to require Google to notify the government about future investments in generative AI. The DOJ noted that prohibiting Google from investing in AI could lead to unintended consequences in the fast-evolving sector.
Though the DOJ dropped the AI investment sale, Google proposes loosening agreements with Apple to remain the default search engine.
Trial Set for April as the Case Continues
US District Judge Amit Mehta has scheduled a trial for April to evaluate the proposals in the case, which remains a major antitrust action against Big Tech companies. In addition to Google, Apple, Meta Platforms, and Amazon.com are also facing legal challenges over potential illegal monopolies in their respective markets.
Google argues the DOJ's approach could limit its AI competitiveness and harm the US' global leadership in technology. Many DOJ proposals, including search query data-sharing adjustments, remain mostly unchanged, with minor tweaks for fees and security.
