Alphabet CEO Sundar Pichai testified in federal court that a Justice Department proposal requiring Google to share its search data, including with competitors, would amount to a ‘de facto divestiture’ of the company’s search engine. He described the DOJ’s proposal as ‘extraordinary’ and argued that it would jeopardize Google’s ability to fund innovation if its work is given away at marginal cost.
Pichai addressed the court during the second week of the remedies trial, which will determine penalties against Google. Last year, U.S. District Judge Amit Mehta ruled that Google had illegally maintained a monopoly on the search engine market. The DOJ originally targeted Google’s contracts with device makers like Apple and Samsung, which made Google the default search engine on new phones. They are asking Mehta to prohibit Google from paying for exclusive default placements.
The government also seeks to spin off Google’s Chrome browser, arguing it powers Google’s advertising business by collecting data from user activity. Splitting it off could increase competition in the online search market. Additionally, the DOJ argues that Google’s control of search gives an advantage to its AI products, which in turn direct users back to Google search, maintaining dominance and blocking competitors.
Google maintains that it will appeal Mehta’s ruling once the penalty phase concludes. Pichai emphasized Google’s significant investment in AI research and development, stating that AI is one of the most profound technologies humans will ever develop. He noted that Google has spent approximately $49 billion on AI R&D.
During testimony, Pichai highlighted how AI has improved Google’s search quality and stated that AI will profoundly transform Google search in the coming years. He acknowledged competition in the AI space, noting that while Google views its Gemini chatbot as a leading model, there remains a gap compared to OpenAI’s ChatGPT.
The DOJ previously called Nick Turley, OpenAI’s head of product for ChatGPT, to testify about the need for access to Google’s search index and data to improve their technology. Google’s attorneys are expected to present witnesses through the end of next week, with closing arguments in late May and a decision expected by August.
— new from NPR
