Gemini AI's presence on Samsung Galaxy devices is costing Google "huge amounts of money"

The US Department of Justice is pursuing antitrust proceedings against Google, accusing the company of illegally dominating the internet search market and interesting details about the company's dealings are being revealed in the process.

Here's What We Know

According to the details revealed in the antitrust proceedings, Google is paying Samsung significant sums every month to install the Gemini AI app on Galaxy smartphones, with the option to extend this deal until 2028. While the exact financial terms of the deal were not disclosed, a Justice Department lawyer described the payments as "huge."

This practice is not new: it was previously revealed that Google paid Samsung $8 billion over four years to have Google's search engine and Play Store app shop pre-installed on the company's devices. Despite repeated court rulings finding such actions to be a violation of antitrust laws, Google continues to enter into such agreements.

Google and Samsung's collaboration on artificial intelligence has led to exclusive features on Galaxy devices, and the global distribution of Samsung products allows Google to scale its AI services. However, the outcome of the lawsuit could jeopardise the future of such arrangements.

Source: Bloomberg