Google’s legal battle with the U.S. Department of Justice (DOJ) has reached a critical juncture, with the tech giant issuing subpoenas to Microsoft, OpenAI, and Perplexity AI in its effort to counter claims of monopolistic behavior.
The subpoenas target key data and agreements that Google believes will demonstrate growing competition in the generative AI market. The move comes amid the DOJ’s push for drastic remedies, including the divestiture of Google’s Chrome browser and the unbundling of Android from its search and advertising ecosystem.
A Strategic Offensive in Generative AI
The subpoenas, issued in late October 2024 and published this week, focus on partnerships, exclusive content deals, and training data from Google’s competitors. Microsoft, with its significant stake in OpenAI and its integration of AI tools like ChatGPT into Bing, is at the center of these demands. Google specifically seeks agreements between Microsoft, OpenAI, and Perplexity, as well as details about the data used to train their AI models.
By highlighting Microsoft and OpenAI’s commanding “70% global share in generative artificial intelligence,” Google aims to challenge the narrative that its dominance uniquely stifles competition.
The OpenAI subpoena demands include internal discussions about ChatGPT’s use of Bing Search, agreements with Microsoft, and board-level strategies for AI distribution. Google argues that these disclosures could reveal how rivals leverage strategic partnerships to gain competitive advantages.
Perplexity AI, a smaller but growing AI search competitor, has been less cooperative, prompting Google to seek court enforcement to access documents on the company’s monetization strategies and agreements. Google contends that such data is essential to understanding the competitive pressures shaping the AI-driven search market. Google´s lawyers write:
“Perplexity’s response to the subpoena has been inadequate, delaying the production of critical documents including information about its monetization strategies, agreements related to Bing-powered search, and communications with potential advertisers.”
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DOJ Remedies Threaten Google’s Ecosystem
The subpoenas align with Google’s broader defense against the DOJ’s proposed remedies, which seek to dismantle parts of its ecosystem. Following Judge Amit Mehta’s August 2024 ruling that found Google guilty of antitrust violations, the DOJ has proposed separating Chrome from Google’s core operations. Chrome, which holds over two-thirds of the browser market, is seen as a linchpin in Google’s dominance, reinforcing its search and advertising monopoly through deep integration.
The DOJ has also proposed unbundling Android, which powers the majority of the world’s smartphones. Regulators argue that Android ties Google’s advertising and search services to its mobile platform, limiting competition. Google warns that such a move could fragment user experiences and weaken app security.
Gemini AI and Exclusive Content Deals Under Scrutiny
Central to the case is Google’s Gemini AI model, which powers predictive tools and search summaries using advanced language processing. While Google argues that Gemini enhances search efficiency and user experience, publishers contend that AI-generated summaries divert traffic from original content.
The DOJ is exploring rules to allow publishers to block their content from appearing in AI summaries without affecting their search rankings.
Exclusive content deals further complicate the antitrust debate. Microsoft CEO Satya Nadella testified that such agreements could “lock all that content today,” restricting its availability for broader AI development. Public records suggest Microsoft and OpenAI have secured numerous such deals, raising concerns about access disparities in training data.
Google’s Defense: Security, Privacy, and Market Access
Google has framed the DOJ’s proposed remedies as disruptive and harmful to both innovation and user interests. Chief Legal Officer Kent Walker stated that forcing Chrome’s divestiture would “endanger the security and privacy of millions of Americans, and undermine the quality of products people love.” Google also argues that unbundling Android could lead to fragmented app ecosystems and reduced security.
By issuing subpoenas, Google seeks to demonstrate that competitors like Microsoft and OpenAI already enjoy significant market advantages. The company contends that its practices are essential for maintaining an innovative, competitive ecosystem:
“Microsoft’s and its business partner OpenAI’s joint efforts to compete in artificial intelligence are succeeding, which would tend to suggest that Plaintiffs’ proposed remedy may ‘chill competition, rather than foster it’,” the company argues.
Broader Implications for the Tech Industry
The antitrust battle has far-reaching implications beyond Google’s immediate challenges. Mozilla, which relies on Google’s search placement deals for funding, faces financial uncertainty if these agreements are terminated. Meanwhile, a recent federal ruling in favor of Epic Games requires Google to allow third-party app stores on Android, disrupting its established app distribution and payment systems.
As Google reshuffles its leadership to address these challenges, with Nick Fox now leading its search and ads division, the case underscores the growing tensions between technological innovation, market competition, and regulatory oversight.
