👨‍⚖️Google’s Search, AI Empire on Trial

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• Google’s search and AI dominance on the line—US takes aim at Google’s monopoly, with AI rivals joining the push for change

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• In other AI news today — Alibaba’s AI cancer detection tool earns FDA breakthrough status, the Academy opens the door for AI-generated films to win Oscars, Musk signals a potential funding boost for xAI, and the UAE pioneers AI-driven law creation

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Google faces high-stakes showdown as US targets its search monopoly and AI power

Key Points 

• The US Justice Department is demanding radical changes to curb Google's dominance in search and emerging AI markets.

• Google argues the proposed remedies would hurt national security, digital innovation, and America’s tech leadership against China.

• AI players like OpenAI and Perplexity are backing the US government's push to break Google’s entrenched market position.

• A final ruling expected by Labor Day could force Google to sell Chrome and share valuable search data.

👨‍💻Context of the news - Google is at a major crossroads as the US government moves to penalize it for turning its revolutionary search engine into what a federal judge has ruled an illegal monopoly.

♨️News - On Monday, a Washington courtroom became the stage for three weeks of hearings that could reshape not just Google, but the future of search and AI.

⚖️A historic remedy hearing kicks off - Federal antitrust officials argue that Google’s dominance, cemented through billion-dollar deals with companies like Apple, has stifled competition for over a decade. Justice Department attorney David Dahlquist called it an "inflection point" for preserving choice in search for future generations. Meanwhile, Google insists it earned its place fairly, warning that the proposed punishments could damage American innovation and digital security.

🤺Breaking up Google & the AI battleground - The Justice Department isn’t holding back. It’s pushing for a sweeping set of remedies: banning Google from exclusive deals, forcing it to share its valuable search data with rivals, and even demanding the sale of its Chrome browser. Officials say these steps are necessary to prevent Google from using AI advancements like its Gemini platform to tighten its grip on the market.

Dahlquist warned that without strong action, Google could simply pivot its dominance into AI, calling it the company’s “next evolution to keep their vicious cycle spinning.” Testimony from top AI players, including OpenAI and Perplexity executives, is expected to support the government’s case.

🛡️Google’s defense - Google, on the other hand, is painting the Justice Department’s demands as dangerous overreach. In filings and a Monday blog post, Google argued that divesting Chrome and opening search data would pose serious privacy and security risks. The company also made a national security argument, saying weakening Google would hurt America's ability to compete with AI challengers like China's DeepSeek.

Lee-Anne Mulholland, Google’s VP of regulatory affairs, slammed the proposals as "a wishlist for competitors" and warned they could “hamstring how we develop AI” at a critical moment.

Google is expected to highlight its role in AI innovation, from pioneering the "Transformers" architecture that underpins today’s chatbots to fostering an open-source browser ecosystem. Its main challenge is convincing the court that it’s essential for American tech leadership, but not so dominant that competition is impossible.

👨‍⚖️Why this matters - The outcome of US v. Google could dramatically alter the tech landscape. Google is already facing the possibility of another breakup, following a separate ruling last week that found it monopolized key parts of the online advertising market.

As Google battles AI heavyweights like OpenAI, Microsoft, and Meta, the stakes couldn’t be higher. If Judge Amit Mehta sides with the DOJ, Google’s ability to maintain or expand its dominance could be severely curtailed.

Closing arguments are expected in late May, with a final decision on remedies due before Labor Day. Google has signaled it plans to appeal once the process wraps, but the company's fight to hold onto its empire is already well underway.

Read the full story here. 

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