Ruling orders Google to disclose search data to competitors, potentially improving Microsoft's Bing search engine performance.
In a groundbreaking decision, a U.S. judge has ruled that Google's dominance over Android devices is illegal, paving the way for phone manufacturers to include apps that compete with Google's offerings.
The ruling, which came in August 2021, states that Google is not allowed to make exclusive deals with Android makers for setting Google's products as default. This means that manufacturers like Samsung and Oppo can now make deals with rivals, such as Microsoft, to include their web browsers and AI assistants alongside Google's.
Google is required to share search index and user interaction data with competitors, giving search engines like Yahoo and DuckDuckGo, as well as app makers on Android that build competing apps, a potential boost. Microsoft, in particular, stands to benefit from this ruling, as it aims to improve Bing's search results with Google's search data.
The ruling gives Microsoft and other browser and AI assistant makers a better chance to compete on Android and in the search engine space. Phone makers can now make deals with third-party apps like OpenAI to have them preloaded, a practice that was often prohibited by Google before.
However, Google is not required to sell Chrome or Android, and it can still make deals to preload its own apps on devices. But it cannot prohibit non-Google apps from also being preloaded.
Google has issued a statement expressing concerns about the impact of the ruling on its users and their privacy. The company continues to pay Apple billions of dollars a year to keep Google as the default search engine on iPhone, a practice that will continue to be allowed.
The impact of these changes on the overall search and browser market remains to be seen. This ruling is a significant advantage for Microsoft, which aims to improve Bing's search results with Google's search data. It also opens up opportunities for other search engine providers and app makers on Android to compete more effectively.
In a surprising turn of events, AI company Perplexity made a $34.5 billion bid to acquire Chrome if Google had to sell it. However, Google is still allowed to make search deals with its own partners, such as Apple, as per the judge's ruling.
This ruling marks a significant shift in the Android market, offering more choices for consumers and fostering competition among app and search engine providers. As the dust settles, it will be interesting to see how the landscape of Android devices and search engines evolves in response to this landmark decision.
