Google faces potential breakup as DOJ targets search monopoly
The US Department of Justice has proposed remedies to dismantle Google‘s dominance in the search market, which analysts warn could undermine the company’s primary profit source and hinder its advancements in AI. The DOJ may seek to compel Google to divest parts of its business, including the Chrome browser and Android operating system, while also considering measures such as barring the collection of sensitive user data, requiring transparency in search results, and allowing websites to opt out of their content being used for AI training.
The proposed changes have already affected Alphabet’s stock, which fell by 1.5% after the announcement. Analysts indicate that if these remedies are put into action, they could diminish Google’s revenue while providing more opportunities for competitors like DuckDuckGo and Microsoft Bing, as well as AI companies such as Meta and Amazon. With Google’s share of the US search ad market expected to fall below 50% for the first time in over a decade by 2025, these remedies are viewed as essential for creating a more competitive landscape.
Despite the ambitious nature of the DOJ’s proposals, some experts are sceptical about their feasibility. Adam Kovacevich from the Chamber of Progress argues that these remedies could encounter legal challenges and may not withstand the appeals process. While investors appear doubtful that a forced breakup of Google will take place, the situation highlights the increasing scrutiny and pressure on the tech giant within a rapidly changing competitive landscape.
Google enhances Android security with new anti-theft tools
Google is gradually rolling out new security features to protect user data, focusing on preventing unauthorised access in cases of theft. The latest tools, which include Theft Detection Lock, Offline Device Lock, and Remote Lock, were announced in May and are becoming available on various Android devices.
Theft Detection Lock uses AI to lock the screen when it detects movement commonly associated with theft, such as someone snatching the phone. Offline Device Lock automatically secures the screen if a phone remains offline for a while, while Remote Lock allows users to lock their phone remotely using only their phone number, even if they can’t log into Find My Device.
Some users have reported seeing the features on devices like the Xiaomi 14T Pro, though others may need to wait as Google rolls out these updates over time. Users are encouraged to ensure their Google Play Services are updated to potentially access these features sooner.
The new security options are supported on Android 10 and up for Theft Detection Lock and Offline Device Lock, while Remote Lock works on devices running Android 5 and higher.
Japan investigates generative AI for fair competition
Japan’s Fair Trade Commission has launched an investigation into the rapidly expanding generative AI market. Concerns have been raised about the dominance of US tech companies, particularly in semiconductors and the specialist workforce needed for AI development.
The commission has invited businesses and users to provide input on antitrust risks, with a first report expected next spring. The study aims to identify challenges for new companies entering the AI market, which often depends on advanced semiconductors and vast data resources.
Nvidia’s dominance in the semiconductor market, controlling 80% of chips used for AI, is highlighted as a potential barrier to competition. The commission also noted risks related to monopolisation of specialists by large IT companies and prioritising their own AI products.
Other nations, including the US, European Union, and South Korea, are conducting similar investigations. Study in Japan intends to balance AI’s benefits with ensuring fair market access and competition.
AEOS lands €10M investment to unify TV and streaming ad targeting
Croatian startup AEOS, formerly known as AdScanner, has secured €10 million in a Series B investment round led by Taiwania Capital, with additional backing from existing investors. This funding follows significant revenue growth and product innovations that aim to redefine how advertisers reach audiences across both traditional television and streaming platforms.
Founded in 2012, AEOS has become a key player in the European TV advertising market, using data-driven technology to enhance campaign planning and audience measurement. Operating in Croatia, Germany, Austria, Bulgaria, and Serbia, the company plans to use the new investment to accelerate growth and develop its product offerings, particularly in the AI space.
The funding will support the development of AI-driven tools that help advertisers optimise their campaigns across platforms. AEOS has already gained recognition for its Cockpit solution, offering near real-time analytics and bridging the gap between traditional broadcast media and digital streaming services.
In 2024, AEOS will launch its second-generation AI-based planning tool, designed to unify TV and streaming campaigns into one seamless ecosystem. The tool allows advertisers to plan, measure, and optimise their campaigns across multiple devices with greater accuracy than ever before.
Amazon’s AI partnership with Anthropic cleared by UK regulator
The United Kingdom‘s Competition and Markets Authority (CMA) has confirmed that Amazon’s $4 billion partnership with AI startup Anthropic will not be subject to a more in-depth investigation. The regulator determined that the deal did not raise competition concerns under Britain’s merger regulations.
Amazon expressed support for the CMA’s decision, noting that it acknowledged the regulator’s lack of jurisdiction over the collaboration. The CMA also cleared a similar partnership between Microsoft and Inflection AI, while a deal between Alphabet and Anthropic remains under review.
Anthropic, which was co-founded by siblings Dario and Daniela Amodei, former OpenAI executives, reiterated that its partnerships with major tech firms do not compromise its independence or governance. The startup has received billions in investments from several large companies.
Amid growing antitrust scrutiny of deals between startups and big tech firms, regulators are closely monitoring collaborations like those involving Anthropic and its partners.
Microsoft upgrades Copilot for better user engagement
Microsoft has updated its consumer AI assistant, Copilot, giving it a friendlier voice and the ability to analyse web pages while users browse. This enhancement is part of a broader initiative led by Mustafa Suleyman, CEO of Microsoft AI, who noted that a diverse team of creative professionals, including psychologists and comedians, is refining Copilot’s tone and style to set it apart in the crowded AI market.
In a demonstration of the upgraded Copilot, the AI suggested a housewarming gift by recommending popular olive oils after engaging in a conversation about the user’s preferences. This update, which started rolling out on Tuesday, marks one of the initial efforts from Suleyman’s newly established division dedicated to consumer products and technology research.
Although Microsoft is well-known for its business software, it is encountering significant competition in the consumer market, particularly from Google’s search engine. Launched last year, Copilot seeks to attract more users with its improved voice capabilities, making interactions feel more engaging and responsive. New features for Copilot Pro subscribers, such as ‘Think Deeper,’ will enable users to assess their options, while the upcoming ‘Copilot Vision’ function will allow users to interact with content in their Microsoft Edge browser without retaining any data.
Suleyman envisions Copilot as a digital companion that continuously learns from users’ interactions across different Microsoft platforms, such as Word and Windows, with their consent. He noted that Bill Gates is excited about the AI’s capabilities, especially the potential for Copilot to read and parse emails, suggesting that these features are on the horizon.
FCC fines consultant $7.7m for fake Biden robocalls
A political consultant has been fined $7.7 million by the Federal Communications Commission (FCC) for using AI to generate robocalls mimicking President Biden’s voice. The calls, aimed at New Hampshire voters, urged them not to vote in the Democratic primary, sparking significant controversy.
Steven Kramer, the consultant behind the scheme, worked for a challenger to Biden in the primaries. He admitted to paying $500 for the calls to highlight the dangers of AI in political campaigns. Kramer’s actions violated FCC regulations prohibiting misleading caller ID information.
The FCC has given Kramer 30 days to pay the fine, warning that further legal action will follow if he fails to comply. The commission continues to raise concerns over AI’s potential misuse in elections, pushing for stricter regulations to prevent fraud.
FTC fines companies for misusing AI in e-commerce schemes
The US Federal Trade Commission (FTC) has cracked down on five companies for deceptive use of AI. Three cases involved businesses falsely claiming to help consumers generate passive income through e-commerce. The FTC also reached settlements with DoNotPay and Rytr, two companies accused of misleading consumers with their AI tools. DoNotPay, which marketed automated legal services, agreed to a $193,000 settlement and will notify customers of the tool’s limitations, while Rytr faced criticism for allowing users to create fake product reviews through its AI writing feature.
FTC Chair Lina M. Khan stressed that AI tools must comply with existing laws, making it clear that deceiving or misleading consumers with AI is illegal. Despite not admitting wrongdoing, both Rytr and DoNotPay settled with the FTC. Rytr agreed to discontinue its review-generating feature, used to create fake product reviews, while DoNotPay accepted a settlement without admitting fault.
The FTC’s actions have sparked internal debate on how to regulate AI. While all five commissioners supported cracking down on false AI claims, the two Republican commissioners raised concerns about the agency’s authority in the Rytr case. This division highlights differing views within the FTC on the scope of its regulatory powers when addressing AI-related issues.