Recently, it was disclosed that Google is compensating Samsung with a significant amount of money to ensure that its Gemini application is pre-installed on Samsung’s Galaxy devices. This arrangement marks yet another financial agreement between the two tech giants, following Google’s multi-billion-dollar deal for the integration of its search engine on Samsung devices. The revelation of Google’s payment to Samsung came out during an antitrust trial involving Google and the U.S. Department of Justice (DOJ).
Bloomberg reported on this arrangement, which illustrates Google’s strategy to maintain its foothold in the competitive landscape. Notably, this isn’t the first instance of such a deal being exposed; during the Epic Games versus Google lawsuit in November 2023, it was unveiled that Google had paid Samsung $8 billion over four years for the pre-installation of its search engine and Play Store on Galaxy devices. Currently, Google is entangled in a remedies trial regarding its dominance in the search engine market.
Following a defeat to the DOJ last year, the trial aims to address the company’s practices that may undermine competition. The three-week trial commenced recently, and the DOJ has put forth substantial demands that Google contends could threaten American economic and technological leadership. As this legal battle unfolds, there are concerns that the court could order Google to divest assets, potentially even requiring the company to sell its Chrome browser.
Furthermore, new restrictions could be placed on Google’s ability to form deals similar to those with Samsung and Apple, as these agreements play a crucial role in sustaining its dominant market position. The outcome of this trial is yet to be determined, but it undoubtedly has significant implications for Google’s operations moving forward.