antitrust

uk-looking-to-loosen-google’s-control-of-its-search-engine

UK looking to loosen Google’s control of its search engine

Other conduct rules that the CMA is considering include requirements in how it ranks its search results and for Google’s distribution partners such as Apple to offer “choice screens” to help consumers switch more easily between search providers.

The CMA said Alphabet-owned Google’s dominance made the cost of search advertising “higher than would be expected” in a more competitive market.

Google on Tuesday slammed the proposals as “broad and unfocused” and said they could threaten the UK’s access to its latest products and services.

Oliver Bethell, Google’s senior director for competition, warned that “punitive regulations” could change how quickly Google launches new products in the UK.

“Proportionate, evidence-based regulation will be essential to preventing the CMA’s road map from becoming a roadblock to growth in the UK,” he added.

Bethell’s warning of the potential impact of any regulations on the wider UK economy comes after the government explicitly mandated the CMA to focus on supporting growth and investment while minimizing uncertainty for businesses.

Google said last year that it planned to invest $1 billion in a huge new data center just outside London.

The CMA’s probe comes after Google lost a pair of historic US antitrust cases over its dominance of search and its lucrative advertising business.

© 2025 The Financial Times Ltd. All rights reserved. Not to be redistributed, copied, or modified in any way.

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OpenAI weighs “nuclear option” of antitrust complaint against Microsoft

OpenAI executives have discussed filing an antitrust complaint with US regulators against Microsoft, the company’s largest investor, The Wall Street Journal reported Monday, marking a dramatic escalation in tensions between the two long-term AI partners. OpenAI, which develops ChatGPT, has reportedly considered seeking a federal regulatory review of the terms of its contract with Microsoft for potential antitrust law violations, according to people familiar with the matter.

The potential antitrust complaint would likely argue that Microsoft is using its dominant position in cloud services and contractual leverage to suppress competition, according to insiders who described it as a “nuclear option,” the WSJ reports.

The move could unravel one of the most important business partnerships in the AI industry—a relationship that started with a $1 billion investment by Microsoft in 2019 and has grown to include billions more in funding, along with Microsoft’s exclusive rights to host OpenAI models on its Azure cloud platform.

The friction centers on OpenAI’s efforts to transition from its current nonprofit structure into a public benefit corporation, a conversion that needs Microsoft’s approval to complete. The two companies have not been able to agree on details after months of negotiations, sources told Reuters. OpenAI’s existing for-profit arm would become a Delaware-based public benefit corporation under the proposed restructuring.

The companies are discussing revising the terms of Microsoft’s investment, including the future equity stake it will hold in OpenAI. According to The Information, OpenAI wants Microsoft to hold a 33 percent stake in a restructured unit in exchange for foregoing rights to future profits. The AI company also wants to modify existing clauses that give Microsoft exclusive rights to host OpenAI models in its cloud.

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Google and DOJ tussle over how AI will remake the web in antitrust closing arguments

At the same time, Google is seeking to set itself apart from AI upstarts. “Generative AI companies are not trying to out-Google Google,” said Schmidtlein. Google’s team contends that its actions have not harmed any AI products like ChatGPT or Perplexity, and at any rate, they are not in the search market as defined by the court.

Mehta mused about the future of search, suggesting we may have to rethink what a general search engine is in 2025. “Maybe people don’t want 10 blue links anymore,” he said.

The Chromium problem and an elegant solution

At times during the case, Mehta has expressed skepticism about the divestment of Chrome. During closing arguments, Dahlquist reiterated the close relationship between search and browsers, reminding the court that 35 percent of Google’s search volume comes from Chrome.

Mehta now seems more receptive to a Chrome split than before, perhaps in part because the effects of the other remedies are becoming so murky. He called the Chrome divestment “less speculative” and “more elegant” than the data and placement remedies. Google again claimed, as it has throughout the remedy phase, that forcing it to give up Chrome is unsupported in the law and that Chrome’s dominance is a result of innovation.

Break up the company without touching the sides and getting shocked!

Credit: Aurich Lawson

Even if Mehta leans toward ordering this remedy, Chromium may be a sticking point. The judge seems unconvinced that the supposed buyers—a group which apparently includes almost every major tech firm—have the scale and expertise needed to maintain Chromium. This open source project forms the foundation of many other browsers, making its continued smooth operation critical to the web.

If Google gives up Chrome, Chromium goes with it, but what about the people who maintain it? The DOJ contends that it’s common for employees to come along with an acquisition, but that’s far from certain. There was some discussion of ensuring a buyer could commit to hiring staff to maintain Chromium. The DOJ suggests Google could be ordered to provide financial incentives to ensure critical roles are filled, but that sounds potentially messy.

A Chrome sale seems more likely now than it did earlier, but nothing is assured yet. Following the final arguments from each side, it’s up to Mehta to mull over the facts before deciding Google’s fate. That’s expected to happen in August, but nothing will change for Google right away. The company has already confirmed it will appeal the case, hoping to have the original ruling overturned. It could still be years before this case reaches its ultimate conclusion.

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Meta hypes AI friends as social media’s future, but users want real connections


Two visions for social media’s future pit real connections against AI friends.

A rotting zombie thumb up buzzing with flies while the real zombies are the people in the background who can't put their phones down

Credit: Aurich Lawson | Getty Images

Credit: Aurich Lawson | Getty Images

If you ask the man who has largely shaped how friends and family connect on social media over the past two decades about the future of social media, you may not get a straight answer.

At the Federal Trade Commission’s monopoly trial, Meta CEO Mark Zuckerberg attempted what seemed like an artful dodge to avoid criticism that his company allegedly bought out rivals Instagram and WhatsApp to lock users into Meta’s family of apps so they would never post about their personal lives anywhere else. He testified that people actually engage with social media less often these days to connect with loved ones, preferring instead to discover entertaining content on platforms to share in private messages with friends and family.

As Zuckerberg spins it, Meta no longer perceives much advantage in dominating the so-called personal social networking market where Facebook made its name and cemented what the FTC alleged is an illegal monopoly.

“Mark Zuckerberg says social media is over,” a New Yorker headline said about this testimony in a report noting a Meta chart that seemed to back up Zuckerberg’s words. That chart, shared at the trial, showed the “percent of time spent viewing content posted by ‘friends'” had declined over the past two years, from 22 to 17 percent on Facebook and from 11 to 7 percent on Instagram.

Supposedly because of this trend, Zuckerberg testified that “it doesn’t matter much” if someone’s friends are on their preferred platform. Every platform has its own value as a discovery engine, Zuckerberg suggested. And Meta platforms increasingly compete on this new playing field against rivals like TikTok, Meta argued, while insisting that it’s not so much focused on beating the FTC’s flagged rivals in the connecting-friends-and-family business, Snap and MeWe.

But while Zuckerberg claims that hosting that kind of content doesn’t move the needle much anymore, owning the biggest platforms that people use daily to connect with friends and family obviously still matters to Meta, MeWe founder Mark Weinstein told Ars. And Meta’s own press releases seem to back that up.

Weeks ahead of Zuckerberg’s testimony, Meta announced that it would bring back the “magic of friends,” introducing a “friends” tab to Facebook to make user experiences more like the original Facebook. The company intentionally diluted feeds with creator content and ads for the past two years, but it now appears intent on trying to spark more real conversations between friends and family, at least partly to fuel its newly launched AI chatbots.

Those chatbots mine personal information shared on Facebook and Instagram, and Meta wants to use that data to connect more personally with users—but “in a very creepy way,” The Washington Post wrote. In interviews, Zuckerberg has suggested these AI friends could “meaningfully” fill the void of real friendship online, as the average person has only three friends but “has demand” for up to 15. To critics seeking to undo Meta’s alleged monopoly, this latest move could signal a contradiction in Zuckerberg’s testimony, showing that the company is so invested in keeping users on its platforms that it’s now creating AI friends (wh0 can never leave its platform) to bait the loneliest among us into more engagement.

“The average person wants more connectivity, connection, than they have,” Zuckerberg said, hyping AI friends. For the Facebook founder, it must be hard to envision a future where his platforms aren’t the answer to providing that basic social need. All this comes more than a decade after he sought $5 billion in Facebook’s 2012 initial public offering so that he could keep building tools that he told investors would expand “people’s capacity to build and maintain relationships.”

At the trial, Zuckerberg testified that AI and augmented reality will be key fixtures of Meta’s platforms in the future, predicting that “several years from now, you are going to be scrolling through your feed, and not only is it going to be sort of animated, but it will be interactive.”

Meta declined to comment further on the company’s vision for social media’s future. In a statement, a Meta spokesperson told Ars that “the FTC’s lawsuit against Meta defies reality,” claiming that it threatens US leadership in AI and insisting that evidence at trial would establish that platforms like TikTok, YouTube, and X are Meta’s true rivals.

“More than 10 years after the FTC reviewed and cleared our acquisitions, the Commission’s action in this case sends the message that no deal is ever truly final,” Meta’s spokesperson said. “Regulators should be supporting American innovation rather than seeking to break up a great American company and further advantaging China on critical issues like AI.”

Meta faces calls to open up its platforms

Weinstein, the MeWe founder, told Ars that back in the 1990s when the original social media founders were planning the first community portals, “it was so beautiful because we didn’t think about bots and trolls. We didn’t think about data mining and surveillance capitalism. We thought about making the world a more connected and holistic place.”

But those who became social media overlords found more money in walled gardens and increasingly cut off attempts by outside developers to improve the biggest platforms’ functionality or leverage their platforms to compete for their users’ attention. Born of this era, Weinstein expects that Zuckerberg, and therefore Meta, will always cling to its friends-and-family roots, no matter which way Zuckerberg says the wind is blowing.

Meta “is still entirely based on personal social networking,” Weinstein told Ars.

In a Newsweek op-ed, Weinstein explained that he left MeWe in 2021 after “competition became impossible” with Meta. It was a time when MeWe faced backlash over lax content moderation, drawing comparisons between its service and right-wing apps like Gab or Parler. Weinstein rejected those comparisons, seeing his platform as an ideal Facebook rival and remaining a board member through the app’s more recent shift to decentralization. Still defending MeWe’s failed efforts to beat Facebook, he submitted hundreds of documents and was deposed in the monopoly trial, alleging that Meta retaliated against MeWe as a privacy-focused rival that sought to woo users away by branding itself the “anti-Facebook.”

Among his complaints, Weinstein accused Meta of thwarting MeWe’s attempts to introduce interoperability between the two platforms, which he thinks stems from a fear that users might leave Facebook if they discover a more appealing platform. That’s why he’s urged the FTC—if it wins its monopoly case—to go beyond simply ordering a potential breakup of Facebook, Instagram, and WhatsApp to also require interoperability between Meta’s platforms and all rivals. That may be the only way to force Meta to release its clutch on personal data collection, Weinstein suggested, and allow for more competition broadly in the social media industry.

“The glue that holds it all together is Facebook’s monopoly over data,” Weinstein wrote in a Wall Street Journal op-ed, recalling the moment he realized that Meta seemed to have an unbeatable monopoly. “Its ownership and control of the personal information of Facebook users and non-users alike is unmatched.”

Cory Doctorow, a special advisor to the Electronic Frontier Foundation, told Ars that his vision of a better social media future goes even further than requiring interoperability between all platforms. Social networks like Meta’s should also be made to allow reverse engineering so that outside developers can modify their apps with third-party tools without risking legal attacks, he said.

Doctorow said that solution would create “an equilibrium where companies are more incentivized to behave themselves than they are to cheat” by, say, retaliating against, killing off, or buying out rivals. And “if they fail to respond to that incentive and they cheat anyways, then the rest of the world still has a remedy,” Doctorow said, by having the choice to modify or ditch any platform deemed toxic, invasive, manipulative, or otherwise offensive.

Doctorow summed up the frustration that some users have faced through the ongoing “enshittification” of platforms (a term he coined) ever since platforms took over the Internet.

“I’m 55 now, and I’ve gotten a lot less interested in how things work because I’ve had too many experiences with how things fail,” Doctorow told Ars. “And I just want to make sure that if I’m on a service and it goes horribly wrong, I can leave.”

Social media haters wish OG platforms were doomed

Weinstein pointed out that Meta’s alleged monopoly impacts a group often left out of social media debates: non-users. And if you ask someone who hates social media what the future of social media should look like, they will not mince words: They want a way to opt out of all of it.

As Meta’s monopoly trial got underway, a personal blog post titled “No Instagram, no privacy” rose to the front page of Hacker News, prompting a discussion about social media norms and reasonable expectations for privacy in 2025.

In the post, Wouter-Jan Leys, a privacy advocate, explained that he felt “blessed” to have “somehow escaped having an Instagram account,” feeling no pressure to “update the abstract audience of everyone I ever connected with online on where I am, what I am doing, or who I am hanging out with.”

But despite never having an account, he’s found that “you don’t have to be on Instagram to be on Instagram,” complaining that “it bugs me” when friends seem to know “more about my life than I tell them” because of various friends’ posts that mention or show images of him. In his blog, he defined privacy as “being in control of what other people know about you” and suggested that because of platforms like Instagram, he currently lacked this control. There should be some way to “fix or regulate this,” Leys suggested, or maybe some universal “etiquette where it’s frowned upon to post about social gatherings to any audience beyond who already was at that gathering.”

On Hacker News, his post spurred a debate over one of the longest-running privacy questions swirling on social media: Is it OK to post about someone who abstains from social media?

Some seeming social media fans scolded Leys for being so old-fashioned about social media, suggesting, “just live your life without being so bothered about offending other people” or saying that “the entire world doesn’t have to be sanitized to meet individual people’s preferences.” Others seemed to better understand Leys’ point of view, with one agreeing that “the problem is that our modern norms (and tech) lead to everyone sharing everything with a large social network.”

Surveying the lively thread, another social media hater joked, “I feel vindicated for my decision to entirely stay off of this drama machine.”

Leys told Ars that he would “absolutely” be in favor of personal social networks like Meta’s platforms dying off or losing steam, as Zuckerberg suggested they already are. He thinks that the decline in personal post engagement that Meta is seeing is likely due to a combination of factors, where some users may prefer more privacy now after years of broadcasting their lives, and others may be tired of the pressure of building a personal brand or experiencing other “odd social dynamics.”

Setting user sentiments aside, Meta is also responsible for people engaging with fewer of their friends’ posts. Meta announced that it would double the amount of force-fed filler in people’s feeds on Instagram and Facebook starting in 2023. That’s when the two-year span begins that Zuckerberg measured in testifying about the sudden drop-off in friends’ content engagement.

So while it’s easy to say the market changed, Meta may be obscuring how much it shaped that shift. Degrading the newsfeed and changing Instagram’s default post shape from square to rectangle seemingly significantly shifted Instagram social norms, for example, creating an environment where Gen Z users felt less comfortable posting as prolifically as millennials did when Instagram debuted, The New Yorker explained last year. Where once millennials painstakingly designed immaculate grids of individual eye-catching photos to seem cool online, Gen Z users told The New Yorker that posting a single photo now feels “humiliating” and like a “social risk.”

But rather than eliminate the impulse to post, this cultural shift has popularized a different form of personal posting: staggered photo dumps, where users wait to post a variety of photos together to sum up a month of events or curate a vibe, the trend piece explained. And Meta is clearly intent on fueling that momentum, doubling the maximum number of photos that users can feature in a single post to encourage even more social posting, The New Yorker noted.

Brendan Benedict, an attorney for Benedict Law Group PLLC who has helped litigate big tech antitrust cases, is monitoring the FTC monopoly trial on a Substack called Big Tech on Trial. He told Ars that the evidence at the trial has shown that “consumers want more friends and family content, and Meta is belatedly trying to address this” with features like the “friends” tab, while claiming there’s less interest in this content.

Leys doesn’t think social media—at least the way that Facebook defined it in the mid-2000s—will ever die, because people will never stop wanting social networks like Facebook or Instagram to stay connected with all their friends and family. But he could see a world where, if people ever started truly caring about privacy or “indeed [got] tired of the social dynamics and personal brand-building… the kind of social media like Facebook and Instagram will have been a generational phenomenon, and they may not immediately bounce back,” especially if it’s easy to switch to other platforms that respond better to user preferences.

He also agreed that requiring interoperability would likely lead to better social media products, but he maintained that “it would still not get me on Instagram.”

Interoperability shakes up social media

Meta thought it may have already beaten the FTC’s monopoly case, filing for a motion for summary judgment after the FTC rested its case in a bid to end the trial early. That dream was quickly dashed when the judge denied the motion days later. But no matter the outcome of the trial, Meta’s influence over the social media world may be waning just as it’s facing increasing pressure to open up its platforms more than ever.

The FTC has alleged that Meta weaponized platform access early on, only allowing certain companies to interoperate and denying access to anyone perceived as a threat to its alleged monopoly power. That includes limiting promotions of Instagram to keep users engaged with Facebook Blue. A primary concern for Meta (then Facebook), the FTC claimed, was avoiding “training users to check multiple feeds,” which might allow other apps to “cannibalize” its users.

“Facebook has used this power to deter and suppress competitive threats to its personal social networking monopoly. In order to protect its monopoly, Facebook adopted and required developers to agree to conditional dealing policies that limited third-party apps’ ability to engage with Facebook rivals or to develop into rivals themselves,” the FTC alleged.

By 2011, the FTC alleged, then-Facebook had begun terminating API access to any developers that made it easier to export user data into a competing social network without Facebook’s permission. That practice only ended when the UK parliament started calling out Facebook’s anticompetitive conduct toward app developers in 2018, the FTC alleged.

According to the FTC, Meta continues “to this day” to “screen developers and can weaponize API access in ways that cement its dominance,” and if scrutiny ever subsides, Meta is expected to return to such anticompetitive practices as the AI race heats up.

One potential hurdle for Meta could be that the push for interoperability is not just coming from the FTC or lawmakers who recently reintroduced bipartisan legislation to end walled gardens. Doctorow told Ars that “huge public groundswells of mistrust and anger about excessive corporate power” that “cross political lines” are prompting global antitrust probes into big tech companies and are perhaps finally forcing a reckoning after years of degrading popular products to chase higher and higher revenues.

For social media companies, mounting concerns about privacy and suspicions about content manipulation or censorship are driving public distrust, Doctorow said, as well as fears of surveillance capitalism. The latter includes theories that Doctorow is skeptical of. Weinstein embraced them, though, warning that platforms seem to be profiting off data without consent while brainwashing users.

Allowing users to leave the platform without losing access to their friends, their social posts, and their messages might be the best way to incentivize Meta to either genuinely compete for billions of users or lose them forever as better options pop up that can plug into their networks.

In his Newsweek op-ed, Weinstein suggested that web inventor Tim Berners-Lee has already invented a working protocol “to enable people to own, upload, download, and relocate their social graphs,” which maps users’ connections across platforms. That could be used to mitigate “the network effect” that locks users into platforms like Meta’s “while interrupting unwanted data collection.”

At the same time, Doctorow told Ars that increasingly popular decentralized platforms like Bluesky and Mastodon already provide interoperability and are next looking into “building interoperable gateways” between their services. Doctorow said that communicating with other users across platforms may feel “awkward” at first, but ultimately, it may be like “having to find the diesel pump at the gas station” instead of the unleaded gas pump. “You’ll still be going to the same gas station,” Doctorow suggested.

Opening up gateways into all platforms could be useful in the future, Doctorow suggested. Imagine if one platform goes down—it would no longer disrupt communications as drastically, as users could just pivot to communicate on another platform and reach the same audience. The same goes for platforms that users grow to distrust.

The EFF supports regulators’ attempts to pass well-crafted interoperability mandates, Doctorow said, noting that “if you have to worry about your users leaving, you generally have to treat them better.”

But would interoperability fix social media?

The FTC has alleged that “Facebook’s dominant position in the US personal social networking market is durable due to significant entry barriers, including direct network effects and high switching costs.”

Meta disputes the FTC’s complaint as outdated, arguing that its platform could be substituted by pretty much any social network.

However, Guy Aridor, a co-author of a recent article called “The Economics of Social Media” in the Journal of Economic Literature, told Ars that dominant platforms are probably threatened by shifting social media trends and are likely to remain “resistant to interoperability” because “it’s in the interest of the platform to make switching and coordination costs high so that users are less likely to migrate away.” For Meta, research shows its platforms’ network effects have appeared to weaken somewhat but “clearly still exist” despite social media users increasingly seeking content on platforms rather than just socialization, Aridor said.

Interoperability advocates believe it will make it easier for startups to compete with giants like Meta, which fight hard and sometimes seemingly dirty to keep users on their apps. Reintroducing the ACCESS Act, which requires platform compatibility to enable service switching, Senator Mark R. Warner (D-Va.) said that “interoperability and portability are powerful tools to promote innovative new companies and limit anti-competitive behaviors.” He’s hoping that passing these “long-overdue requirements” will “boost competition and give consumers more power.”

Aridor told Ars it’s obvious that “interoperability would clearly increase competition,” but he still has questions about whether users would benefit from that competition “since one consistent theme is that these platforms are optimized to maximize engagement, and there’s numerous empirical evidence we have by now that engagement isn’t necessarily correlated with utility.”

Consider, Aridor suggested, how toxic content often leads to high engagement but lower user satisfaction, as MeWe experienced during its 2021 backlash.

Aridor said there is currently “very little empirical evidence on the effects of interoperability,” but theoretically, if it increased competition in the current climate, it would likely “push the market more toward supplying engaging entertainment-related content as opposed to friends and family type of content.”

Benedict told Ars that a remedy like interoperability would likely only be useful to combat Meta’s alleged monopoly following a breakup, which he views as the “natural remedy” following a potential win in the FTC’s lawsuit.

Without the breakup and other meaningful reforms, a Meta win could preserve the status quo and see the company never open up its platforms, perhaps perpetuating Meta’s influence over social media well into the future. And if Zuckerberg’s vision comes to pass, instead of seeing what your friends are posting on interoperating platforms across the Internet, you may have a dozen AI friends trained on your real friends’ behaviors sending you regular dopamine hits to keep you scrolling on Facebook or Instagram.

Aridor’s team’s article suggested that, regardless of user preferences, social media remains a permanent fixture of society. If that’s true, users could get stuck forever using whichever platforms connect them with the widest range of contacts.

“While social media has continued to evolve, one thing that has not changed is that social media remains a central part of people’s lives,” his team’s article concluded.

Photo of Ashley Belanger

Ashley is a senior policy reporter for Ars Technica, dedicated to tracking social impacts of emerging policies and new technologies. She is a Chicago-based journalist with 20 years of experience.

Meta hypes AI friends as social media’s future, but users want real connections Read More »

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Meta argues enshittification isn’t real in bid to toss FTC monopoly trial

Further, Meta argued that the FTC did not show evidence that users sharing friends-and-family content were shown more ads. Meta noted that it “does not profit by showing more ads to users who do not click on them,” so it only shows more ads to users who click ads.

Meta also insisted that there’s “nothing but speculation” showing that Instagram or WhatsApp would have been better off or grown into rivals had Meta not acquired them.

The company claimed that without Meta’s resources, Instagram may have died off. Meta noted that Instagram co-founder Kevin Systrom testified that his app was “pretty broken and duct-taped” together, making it “vulnerable to spam” before Meta bought it.

Rather than enshittification, what Meta did to Instagram could be considered “a consumer-welfare bonanza,” Meta argued, while dismissing “smoking gun” emails from Mark Zuckerberg discussing buying Instagram to bury it as “legally irrelevant.”

Dismissing these as “a few dated emails,” Meta argued that “efforts to litigate Mr. Zuckerberg’s state of mind before the acquisition in 2012 are pointless.”

“What matters is what Meta did,” Meta argued, which was pump Instagram with resources that allowed it “to ‘thrive’—adding many new features, attracting hundreds of millions and then billions of users, and monetizing with great success.”

In the case of WhatsApp, Meta argued that nobody thinks WhatsApp had any intention to pivot to social media when the founders testified that their goal was to never add social features, preferring to offer a simple, clean messaging app. And Meta disputed any claim that it feared Google might buy WhatsApp as the basis for creating a Facebook rival, arguing that “the sole Meta witness to (supposedly) learn of Google’s acquisition efforts testified that he did not have that worry.”

Meta argues enshittification isn’t real in bid to toss FTC monopoly trial Read More »

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Google’s search antitrust trial is wrapping up—here’s what we learned


Google and the DOJ have had their say; now it’s in the judge’s hands.

Last year, United States District Court Judge Amit Mehta ruled that Google violated antitrust law by illegally maintaining a monopoly in search. Now, Google and the Department of Justice (DOJ) have had their say in the remedy phase of the trial, which wraps up today. It will determine the consequences for Google’s actions, potentially changing the landscape for search as we rocket into the AI era, whether we like it or not.

The remedy trial featured over 20 witnesses, including representatives from some of the most important technology firms in the world. Their statements about the past, present, and future of search moved markets, but what does the testimony mean for Google?

Everybody wants Chrome

One of the DOJ’s proposed remedies is to force Google to divest Chrome and the open source Chromium project. Google has been adamant both in and out of the courtroom that it is the only company that can properly run Chrome. It says selling Chrome would negatively impact privacy and security because Google’s technology is deeply embedded in the browser. And regardless, Google Chrome would be too expensive for anyone to buy.

Unfortunately for Google, it may have underestimated the avarice of its rivals. The DOJ called witnesses from Perplexity, OpenAI, and Yahoo—all of them said their firms were interested in buying Chrome. Yahoo’s Brian Provost noted that the company is currently working on a browser that supports the company’s search efforts. Provost said that it would take 6–9 months just to get a working prototype, but buying Chrome would be much faster. He suggested Yahoo’s search share could rise from the low single digits to double digits almost immediately with Chrome.

Break up the company without touching the sides and getting shocked!

Credit: Aurich Lawson

Meanwhile, OpenAI is burning money on generative AI, but Nick Turley, product manager for ChatGPT, said the company was prepared to buy Chrome if the opportunity arises. Like Yahoo, OpenAI has explored designing its own browser, but acquiring Chrome would instantly give it 3.5 billion users. If OpenAI got its hands on Chrome, Turley predicted an “AI-first” experience.

On the surface, the DOJ’s proposal to force a Chrome sale seems like an odd remedy for a search monopoly. However, the testimony made the point rather well. Search and browsers are inextricably linked—putting a different search engine in the Chrome address bar could give the new owner a major boost.

Browser choice conundrum

Also at issue in the trial are the massive payments Google makes to companies like Apple and Mozilla for search placement, as well as restrictions on search and app pre-loads on Android phones. The government says these deals are anti-competitive because they lock rivals out of so many distribution mechanisms.

Google pays Apple and Mozilla billions of dollars per year to remain the default search engine in their browsers. Apple’s Eddie Cue admitted he’s been losing sleep worrying about the possibility of losing that revenue. Meanwhile, Mozilla CFO Eric Muhlheim explained that losing the Google deal could spell the end of Firefox. He testified that Mozilla would have to make deep cuts across the company, which could lead to a “downward spiral” that dooms the browser.

Google’s goal here is to show that forcing it to drop these deals could actually reduce consumer choice, which does nothing to level the playing field, as the DOJ hopes to do. Google’s preferred remedy is to simply have less exclusivity in its search deals across both browsers and phones.

The great Google spinoff

While Google certainly doesn’t want to lose Chrome, there may be a more fundamental threat to its business in the DOJ’s remedies. The DOJ argued that Google’s illegal monopoly has given it an insurmountable technology lead, but a collection of data remedies could address that. Under the DOJ proposal, Google would have to license some of its core search technology, including the search index and ranking algorithm.

Google CEO Sundar Pichai gave testimony at the trial and cited these data remedies as no better than a spinoff of Google search. Google’s previous statements have referred to this derisively as “white labeling” Google search. Pichai claimed these remedies could force Google to reevaluate the amount it spends on research going forward, slowing progress in search for it and all the theoretical licensees.

Currently, there is no official API for syndicating Google’s search results. There are scrapers that aim to offer that service, but that’s a gray area, to say the least. Google has even rejected lucrative deals to share its index. Turley noted in his testimony that OpenAI approached Google to license the index for ChatGPT, but Google decided the deal could harm its search dominance, which was more important than a short-term payday.

AI advances

Initially, the DOJ wanted to force Google to stop investing in AI firms, fearing its influence could reduce competition as it gained control or acquired these startups. The government has backed away from this remedy, but AI is still core to the search trial. That seemed to surprise Judge Mehta.

During Pichai’s testimony, Mehta remarked that the status of AI had shifted considerably since the liability phase of the trial in 2023. “The consistent testimony from the witnesses was that the integration of AI and search or the impact of AI on search was years away,” Mehta said. Things are very different now, Mehta noted, with multiple competitors to Google in AI search. This may actually help Google’s case.

AI search has exploded since the 2023 trial, with Google launching its AI-only search product in beta earlier this year.

AI search has exploded since the 2023 trial, with Google launching its AI-only search product in beta earlier this year.

Throughout the trial, Google has sought to paint search as a rapidly changing market where its lead is no longer guaranteed. Google’s legal team pointed to the meteoric rise of ChatGPT, which has become an alternative to traditional search for many people.

On the other hand, Google doesn’t want to look too meek and ineffectual in the age of AI. Apple’s Eddie Cue testified toward the end of the trial and claimed that rival traditional search providers like DuckDuckGo don’t pose a real threat to Google, but AI does. According to Cue, search volume in Safari was down for the first time in April, which he attributed to people using AI services instead. Google saw its stock price drop on the news, forcing it to issue a statement denying Cue’s assessment. It says searches in Safari and other products are still growing.

A waiting game

With the arguments made, Google’s team will have to sweat it out this summer while Mehta decides on remedies. A decision is expected in August of this year, but that won’t be the end of it. Google is still hoping to overturn the original verdict. After the remedies are decided, it’s going to appeal and ask for a pause on the implementation of remedies. So it could be a while before anything changes for Google.

In the midst of all that, Google is still pursuing an appeal of the Google Play case brought by Epic Games, as well as the ad tech case that it lost a few weeks ago. That remedy trial will begin in September.

Photo of Ryan Whitwam

Ryan Whitwam is a senior technology reporter at Ars Technica, covering the ways Google, AI, and mobile technology continue to change the world. Over his 20-year career, he’s written for Android Police, ExtremeTech, Wirecutter, NY Times, and more. He has reviewed more phones than most people will ever own. You can follow him on Bluesky, where you will see photos of his dozens of mechanical keyboards.

Google’s search antitrust trial is wrapping up—here’s what we learned Read More »

doj-confirms-it-wants-to-break-up-google’s-ad-business

DOJ confirms it wants to break up Google’s ad business

In the trial, Google will paint this demand as a severe overreach, claiming that few, if any, companies would have the resources to purchase and run the products. Last year, an ad consultant estimated Google’s ad empire could be worth up to $95 billion, quite possibly too big to sell. However, Google was similarly skeptical about Chrome, and representatives from other companies have said throughout the search remedy trial that they would love to buy Google’s browser.

An uphill battle

After losing three antitrust cases in just a couple of years, Google will have a hard time convincing the judge it is capable of turning over a new leaf with light remedies. A DOJ lawyer told the court Google is a “recidivist monopolist” that has a pattern of skirting its legal obligations. Still, Google is looking for mercy in the case. We expect to get more details on Google’s proposed remedies as the next trial nears, but it already offered a preview in today’s hearing.

Google suggests making a smaller subset of ad data available and ending the use of some pricing schemes, including unified pricing, that the court has found to be anticompetitive. Google also promised not to re-implement discontinued practices like “last look,” which gave the company a chance to outbid rivals at the last moment. This was featured prominently in the DOJ’s case, although Google ended the practice several years ago.

To ensure it adheres to the remedies, Google suggested a court-appointed monitor would audit the process. However, Brinkema seemed unimpressed with this proposal.

As in its other cases, Google says it plans to appeal the verdict, but before it can do that, the remedies phase has to be completed. Even if it can get the remedies paused for appeal, the decision could be a blow to investor confidence. So, Google will do whatever it can to avoid the worst-case scenario, leaning on the existence of competing advertisers like Meta and TikTok to show that the market is still competitive.

Like the search case, Google won’t be facing any big developments over the summer, but this fall could be rough. Judge Amit Mehta will most likely rule on the search remedies in August, and the ad tech remedies case will begin the following month. Google also has the Play Store case hanging over its head. It lost the first round, but the company hopes to prevail on appeal when the case gets underway again, probably in late 2025.

DOJ confirms it wants to break up Google’s ad business Read More »

openai-wants-to-buy-chrome-and-make-it-an-“ai-first”-experience

OpenAI wants to buy Chrome and make it an “AI-first” experience

According to Turley, OpenAI would throw its proverbial hat in the ring if Google had to sell. When asked if OpenAI would want Chrome, he was unequivocal. “Yes, we would, as would many other parties,” Turley said.

OpenAI has reportedly considered building its own Chromium-based browser to compete with Chrome. Several months ago, the company hired former Google developers Ben Goodger and Darin Fisher, both of whom worked to bring Chrome to market.

Close-up of Google Chrome Web Browser web page on the web browser. Chrome is widely used web browser developed by Google.

Credit: Getty Images

It’s not hard to see why OpenAI might want a browser, particularly Chrome with its 4 billion users and 67 percent market share. Chrome would instantly give OpenAI a massive install base of users who have been incentivized to use Google services. If OpenAI were running the show, you can bet ChatGPT would be integrated throughout the experience—Turley said as much, predicting an “AI-first” experience. The user data flowing to the owner of Chrome could also be invaluable in training agentic AI models that can operate browsers on the user’s behalf.

Interestingly, there’s so much discussion about who should buy Chrome, but relatively little about spinning off Chrome into an independent company. Google has contended that Chrome can’t survive on its own. However, the existence of Google’s multibillion-dollar search placement deals, which the DOJ wants to end, suggests otherwise. Regardless, if Google has to sell, and OpenAI has the cash, we might get the proposed “AI-first” browsing experience.

OpenAI wants to buy Chrome and make it an “AI-first” experience Read More »

google-tells-trump’s-doj-that-forcing-a-chrome-sale-would-harm-national-security

Google tells Trump’s DOJ that forcing a Chrome sale would harm national security

Close-up of Google Chrome Web Browser web page on the web browser. Chrome is widely used web browser developed by Google.

Credit: Getty Images

The government’s 2024 request also sought to have Google’s investment in AI firms curtailed even though this isn’t directly related to search. If, like Google, you believe leadership in AI is important to the future of the world, limiting its investments could also affect national security. But in November, Mehta suggested he was open to considering AI remedies because “the recent emergence of AI products that are intended to mimic the functionality of search engines” is rapidly shifting the search market.

This perspective could be more likely to find supporters in the newly AI-obsessed US government with a rapidly changing Department of Justice. However, the DOJ has thus far opposed allowing AI firm Anthropic to participate in the case after it recently tried to intervene. Anthropic has received $3 billion worth of investments from Google, including $1 billion in January.

New year, new Justice Department

Google naturally opposed the government’s early remedy proposal, but this happened in November, months before the incoming Trump administration began remaking the DOJ. Since taking office, the new administration has routinely criticized the harsh treatment of US tech giants, taking aim at European Union laws like the Digital Markets Act, which tries to ensure user privacy and competition among so-called “gatekeeper” tech companies like Google.

We may get a better idea of how the DOJ wants to proceed later this week when both sides file their final proposals with Mehta. Google already announced its preferred remedy at the tail end of 2024. It’s unlikely Google’s final version will be any different, but everything is up in the air for the government.

Even if current political realities don’t affect the DOJ’s approach, the department’s staffing changes could. Many of the people handling Google’s case today are different than they were just a few months ago, so arguments that fell on deaf ears in 2024 could move the needle. Perhaps emphasizing the national security angle will resonate with the newly restaffed DOJ.

After both sides have had their say, it will be up to the judge to eventually rule on how Google must adapt its business. This remedy phase should get fully underway in April.

Google tells Trump’s DOJ that forcing a Chrome sale would harm national security Read More »

disney,-fox,-and-wbd-give-up-on-controversial-sports-streaming-app-venu

Disney, Fox, and WBD give up on controversial sports streaming app Venu

Although Fubo’s lawsuit against the JV appears to be settled, other rivals in sports television seemed intent on continuing to fight Venu.

In a January 9 letter (PDF) to US District Judge Margaret M. Garnett of the Southern District in New York, who granted Fubo’s premliminary injunction against Venu, Michael Hartman, general counsel and chief external affairs officer for DirectTV, wrote that Fubo’s settlement “does nothing to resolve the underlying antitrust violations at issue.” Hartman asked the court to maintain the preliminary injunction against the app’s launch.

“The preliminary injunction has protected consumers and distributors alike from the JV Defendant’s scheme to ‘capture demand,’ ‘suppress’ potentially competitive sports bundles, and impose consumer price hikes,” the letter says, adding that DirectTV would continue to explore its options regarding the JV “and other anticompetitive harms.”

Similarly, Pantelis Michalopoulos, counsel for EchoStar Corporation, which owns Dish, penned a letter (PDF) to Garnett on January 7, claiming the members of the JV “purchased their way out of their antitrust violation.” Michalopoulos added that the JV defendants “should not be able to pay their way into erasing the Court’s carefully reasoned decision” to temporarily block Venu’s launch.

In addition to Fubo, DirecTV, and Dish, ACA Connects (a trade association for small- to medium-sized telecommunication service providers) publicly expressed concerns about Venu. NFL was also reported to be worried about the implications of the venture.

Now, the three giants behind Venu are throwing in the towel and abandoning an app that could have garnered a lot of subscribers tired of hopping around apps, channels, and subscriptions to watch all the sports content they wanted. But they’re also avoiding a lot of litigation and potential backlash in the process.

Disney, Fox, and WBD give up on controversial sports streaming app Venu Read More »

ftc-launches-probe-of-microsoft-over-bundling

FTC launches probe of Microsoft over bundling

John Lopatka, a former consultant to the FTC who now teaches antitrust law at Penn State, told ProPublica that the Microsoft actions detailed in the news organization’s recent reporting followed “a very familiar pattern” of behavior.

“It does echo the Microsoft case” from decades ago, said Lopatka, who co-authored a book on that case.

In the new investigation, the FTC has sent Microsoft a civil investigative demand, the agency’s version of a subpoena, compelling the company to turn over information, people familiar with the probe said. Microsoft confirmed that it received the document.

Company spokesperson David Cuddy did not comment on the specifics of the investigation but said the FTC’s demand is “broad, wide ranging, and requests things that are out of the realm of possibility to even be logical.” He declined to provide on-the-record examples. The FTC declined to comment.

The agency’s investigation follows a public comment period in 2023 during which it sought information on the business practices of cloud computing providers. When that concluded, the FTC said it had ongoing interest in whether “certain business practices are inhibiting competition.”

The recent demand to Microsoft represents one of FTC Commissioner Lina Khan’s final moves as chair, and the probe appears to be picking up steam as the Biden administration winds down. The commission’s new leadership, however, will decide the future of the investigation.

President-elect Donald Trump said this month that he will elevate Commissioner Andrew Ferguson, a Republican attorney, to lead the agency. Following the announcement, Ferguson said in a post on X, “At the FTC, we will end Big Tech’s vendetta against competition and free speech. We will make sure that America is the world’s technological leader and the best place for innovators to bring new ideas to life.”

Trump also said he would nominate Republican lawyer Mark Meador as a commissioner, describing him as an “antitrust enforcer” who previously worked at the FTC and the Justice Department. Meador is also a former aide to Sen. Mike Lee, a Utah Republican who introduced legislation to break up Google.

Doris Burke contributed research.

This story originally appeared on ProPublica.

FTC launches probe of Microsoft over bundling Read More »

ftc-to-launch-investigation-into-microsoft’s-cloud-business

FTC to launch investigation into Microsoft’s cloud business

The FTC also highlighted fees charged on users transferring data out of certain cloud systems and minimum spend contracts, which offer discounts to companies in return for a set level of spending.

Microsoft has also attracted scrutiny from international regulators over similar matters. The UK’s Competition and Markets Authority is investigating Microsoft and Amazon after its fellow watchdog Ofcom found that customers complained about being “locked in” to a single provider, which offers discounts for exclusivity and charge high “egress fees” to leave.

In the EU, Microsoft has avoided a formal probe into its cloud business after agreeing to a multimillion-dollar deal with a group of rival cloud providers in July.

The FTC in 2022 sued to block Microsoft’s $75 billion acquisition of video game maker Activision Blizzard over concerns the deal would harm competitors to its Xbox consoles and cloud-gaming business. A federal court shot down an attempt by the FTC to block it, which is being appealed. A revised version of the deal in the meantime closed last year following its clearance by the UK’s CMA.

Since its inception 20 years ago, cloud infrastructure and services has grown to become one of the most lucrative business lines for Big Tech as companies outsource their data storage and computing online. More recently, this has been turbocharged by demand for processing power to train and run artificial intelligence models.

Spending on cloud services soared to $561 billion in 2023 with market researcher Gartner forecasting it will grow to $675 billion this year and $825 billion in 2025. Microsoft has about a 20 percent market share over the global cloud market, trailing leader Amazon Web Services that has 31 percent, but almost double the size of Google Cloud at 12 percent.

There is fierce rivalry between the trio and smaller providers. Last month, Microsoft accused Google of running “shadow campaigns” seeking to undermine its position with regulators by secretly bankrolling hostile lobbying groups.

Microsoft also alleged that Google tried to derail its settlement with EU cloud providers by offering them $500 million in cash and credit to reject its deal and continue pursuing litigation.

The FTC and Microsoft declined to comment.

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FTC to launch investigation into Microsoft’s cloud business Read More »