AI Rescues Google

A US judge has ruled that Google did not need to be broken up despite its search monopoly, citing the rise of artificial intelligence as a competitive threat. The judge banned exclusive contracts for Google Search, Chrome, Assistant, and Gemini, but permitted Google to continue paying Apple to remain the default search engine on iPhones. The court's decision acknowledged that generative AI models have the capacity to fulfill a broad array of informational needs.

Google uses a proprietary technology called FastSearch to ground its Gemini models. FastSearch delivers results more quickly than a regular search because it retrieves fewer documents. The recent court opinion in the Google antitrust case featured a passage that offers a clue as to why Google's AI Overviews showed spammy web pages and speculates how it reflects Google's move away from links as a prominent ranking factor.

Despite avoiding a breakup, Google still faces ongoing antitrust scrutiny. The ruling has been viewed as a win for both Google and Apple, with analysts suggesting it paves the way for further AI-related partnerships between the two companies.