Alphabet Inc. has entered into a significant agreement with Samsung Electronics for preinstalling its generative AI app, Gemini, on Samsung devices. This arrangement, disclosed in a court case regarding antitrust violations, involves substantial payments to Samsung, fixed per device, along with a revenue share from app advertisements. Despite previous rulings against Google for similar practices, the company argues that the contract allows Samsung some flexibility in featuring alternative AI services. The ongoing case raises broader questions about Google's business practices and potential future regulations.
Even though paying for installations has twice been found to violate the law, Alphabet Inc. continues to pay Samsung for preinstalling its generative AI app, Gemini.
The contract with Samsung not only includes monthly payments for each device preinstalled with Gemini, but also a share of advertisements revenue generated within the app.
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