 "Google has criticised the DoJ’s recommendations, warning that the proposed remedies could hinder innovation in artificial intelligence. Image Credit: Reuters")
The US Department of Justice (DoJ) is expanding its antitrust investigation into Google, now targeting the company’s $2 billion partnership with artificial intelligence startup Anthropic. As part of its broader case against Google’s alleged monopoly over online search, the DoJ has proposed measures that could force the tech giant to unwind its investment and sever ties with Anthropic.
The recommendation, detailed in a court filing on Wednesday, aims to prevent Google from investing in or collaborating with companies that influence where users search for information, including AI-driven search tools . This proposal follows earlier calls for Google to divest its Chrome browser, which a judge deemed a key factor in reinforcing the company’s dominance.
Google’s deal with Anthropic in the crosshairs
Google’s relationship with Anthropic has raised concerns among regulators due to its potential implications for the growing AI industry. The investment, made last year, gave Google non-voting shares in the startup and advisory rights on significant business decisions. The deal also included a major cloud partnership, solidifying Google’s influence over Anthropic’s operations.
Critics argue that such arrangements allow tech giants like Google to exert control over emerging AI companies, potentially stifling competition in the sector. The Justice Department’s proposal aims to curb these practices by restricting Google’s ability to invest in or collaborate with AI-focused firms, particularly those involved in search-related technologies.
Regulatory pressure intensifies
Google has criticised the DoJ’s recommendations, warning that the proposed remedies could hinder innovation in artificial intelligence. In a blog post released Thursday, the company argued that the measures would undermine America’s leadership in AI development and economic growth. Google has also pointed to its significant investment in AI as evidence of its commitment to advancing technology.
The Anthropic deal is not the only large investment under scrutiny. Amazon’s $4 billion backing of Anthropic has also drawn regulatory attention, with concerns that major cloud and AI deals by Big Tech could create an uneven playing field in the emerging industry.
Interestingly, the UK’s competition watchdog recently reviewed Google’s Anthropic deal and concluded that it did not require further investigation, a decision that contrasts with the DoJ’s aggressive stance.
High stakes for Google and the AI Sector
The Justice Department’s proposals come as part of its landmark antitrust case against Google, which has already targeted the company’s Chrome browser and its agreements with device makers to make its search engine the default option. These measures reflect growing regulatory concern over the influence of Big Tech in shaping the future of AI and online search.
If enforced, the proposed restrictions could reshape Google’s AI strategy and signal a significant shift in how regulators oversee the tech industry. The case also underscores the tension between fostering innovation and preventing monopolistic practices, a balancing act that will shape the future of both AI and competition law in the US