US Department of Justice Drops Proposal to Force Google to Sell AI Investments
The US Department of Justice (DOJ) has dropped a proposal to force Alphabet’s Google to sell its investments in artificial intelligence (AI) companies, including OpenAI competitor Anthropic, to boost competition in online search.
DOJ and State Attorneys General Seek Court Order to Address Google’s Search Monopoly
The DOJ and a coalition of 38 state attorneys general still seek a court order requiring Google to sell its Chrome browser and take other measures aimed at addressing what a judge said was Google’s illegal search monopoly, according to court papers filed in Washington.
Concerns Over Freedom of Speech and Competition
"The American dream is about higher values than just cheap goods and ‘free’ online services. These values include freedom of speech, freedom of association, freedom to innovate, and freedom to compete in a market undistorted by the controlling hand of a monopolist," prosecutors wrote.
Google Responds to Proposal
A spokesperson for Google said the "sweeping proposals continue to go miles beyond the Court’s decision, and would harm America’s consumers, economy, and national security."
Anthropic Remains Silent
A spokesperson for Anthropic did not immediately respond to a request for comment.
President Trump’s Crackdown on Big Tech
President Donald Trump has said he would continue a crackdown on Big Tech, which began during his first term and continued into former president Joe Biden’s administration. Trump has tapped veteran antitrust attorney Gail Slater to lead the effort.
Background on the Case
Google holds a minority stake worth billions of US dollars in Anthropic. Losing the investment would hand a competitive advantage to OpenAI and its partner Microsoft, Anthropic wrote to the court in February. The evidence prosecutors obtained since making their draft recommendation in November showed a risk that banning Google from AI investments "could cause unintended consequences in the evolving AI space," they said in the final proposal on Friday. They asked that Google be required to give prior notice to the government about future investments in generative AI.
Google’s Proposal
Google, which has said it will appeal, has made its own proposal that would loosen agreements with Apple and others to set Google as the default search engine on new devices. US District Judge Amit Mehta has scheduled a trial on the proposals for April.
Other Antitrust Cases
The blockbuster case is one of several US antitrust cases against Big Tech companies. Apple, Meta Platforms, and Amazon.com also face allegations of maintaining illegal monopolies in their respective markets.
Conclusion
The US Department of Justice’s proposal to force Google to sell its AI investments has been dropped, but the case is far from over. The DOJ and state attorneys general are still seeking a court order to address Google’s search monopoly, while Google is set to appeal the proposal. The case highlights the ongoing debate over the role of Big Tech in the economy and the need for regulation to ensure competition and innovation.
FAQs
Q: What is the US Department of Justice’s proposal regarding Google’s AI investments?
A: The proposal has been dropped, but the DOJ and state attorneys general still seek a court order to address Google’s search monopoly.
Q: What is the purpose of the proposal?
A: The proposal aims to boost competition in online search by forcing Google to sell its investments in AI companies, including OpenAI competitor Anthropic.
Q: How has Google responded to the proposal?
A: A spokesperson for Google said the proposal would harm America’s consumers, economy, and national security.
Q: What is the significance of the case?
A: The case is one of several US antitrust cases against Big Tech companies, including Apple, Meta Platforms, and Amazon.com.
