"The company dodged the most draconian remedies, such as a forced divestiture of Chrome or Android, or an outright ban on paying for distribution. Still, Bernstein analysts argue the Department of Justice remedies, while seemingly mild, actually carry hidden risks that could leave Google worse off than before. "The remedies shift power from Google," Mark Shmulik, a senior internet analyst at Bernstein, wrote in a note to investors."
"That flexibility transforms Apple into a powerful orchestrator, able to divert traffic to whichever partner pays most or best fits user queries. The remedies for AI-driven competition go further. Google can no longer sign exclusive deals for Gemini or other generative AI products, giving OpenAI and rivals such as Anthropic the ability to carve out market share on devices and browsers. In Bernstein's view, that creates "small windows where competitors can squeeze through.""
Department of Justice remedies avoid forced divestiture of Chrome or Android and do not ban paid distribution, but they eliminate exclusivity in distribution contracts and enable syndication and data sharing. Eliminating exclusivity allows platform owners and device makers to route different search types to alternative partners, shifting referral power away from Google. Prohibiting exclusive deals for generative AI products opens device and browser placement opportunities for rivals like OpenAI and Anthropic. Those changes create small but meaningful windows for competitors to capture traffic, carve out market share, and increase competitive risk to Google's search and AI franchises.
Read at Business Insider
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