In an ongoing US antitrust trial, Google is under scrutiny for restricting competition in the AI assistant market. Perplexity AI, a rising AI assistant startup, has testified that Google blocked Motorola from setting Perplexity as the default assistant on new smartphones, citing restrictive contracts.
Google’s Control Over AI Apps
During the trial, Perplexity AI’s Chief Business Officer revealed that despite Motorola’s plans to preload Perplexity’s assistant on its devices, it could not make it the default due to Google’s binding agreements. These agreements prevent other companies from making alternative assistants the default option, creating significant challenges for startups like Perplexity.
Google’s Monopoly and its Effects
Perplexity’s CEO stated that Google’s dominance in the smartphone market has made it nearly impossible for competitors to break through. Google’s restrictive terms create an environment where device manufacturers fear losing revenue if they switch to another assistant. The pressure to stick with Google’s services continues to stifle innovation in the AI assistant space.
According to Perplexity’s CEO, negotiations with other companies about preloading their app on devices only started to move forward due to the ongoing US Department of Justice antitrust case against Google. The Justice Department is asking the court to ban Google from paying for default placements, which would also affect its AI products like Gemini.
Perplexity’s Own Browser and Concerns Over Chrome
In addition to their assistant, Perplexity is also developing their own browser, Comet, to compete with established options like Google Chrome. The company has voiced concerns about the potential sale of Chrome, fearing that it could limit open-source access. Perplexity has also expressed disagreement with OpenAI’s interest in acquiring Chrome, citing the company’s inconsistent history with open-source commitments.
