Anthropic, Jeff Bezos ‘AI Startup Backed by Amazon.com Inc. amznfiled a lawsuit in federal court to dismiss the US government’s proposal to prevent Alphabet Inc. googl Goog Google from investing in AI startups. The proposal is intended to address the suspected monopoly of Google’s online search market.
What happened: Humanity filed in court on Friday to assert that the proposed relief plan would have a negative impact on both the company and the competition in general.
The proposals announced by the Justice Department and the state coalition include major changes to Google’s operations, including forced sales of Chrome web browsers.
See: Elon Musk told the United Nations whether he could show plans to end world hunger, which would donate $6 billion. “I’ll sell Tesla stocks right now.”
The proposal is intended to block purchases, investments, or partnerships for companies that manage consumer search data, including those that Google is developing AI technology.
Humanity, which received about $3 billion in funds from Google, argued in a court application that the proposed remedy would harm both the company and the overall market competition. AI startups also claimed that forced sales would unfairly benefit larger competitors, including Openai and Meta Platforms Inc. Meta.
The US Federal Trade Commission (FTC) has raised concerns about major high-tech companies such as Google and Microsoft Corp. msft Invest in AI startups and warn that such transactions can lead to data integration in key areas such as chip development, model training, and data center infrastructure.
Why it matters: The US government’s proposal is part of Google’s ongoing commitment to the online search and search advertising market.
The November decision caused a significant drop in the market value of the alphabet after DOJ announced its relief package in an anti-trust lawsuit against Google. Alphabet’s business model is highly interrelated and its services benefit from a strong synergy.
In the third quarter of 2024, the company’s “Search & Other” segment generated $49.4 billion, accounting for 56% of its quarterly total revenue.
These proposed remedies spark discussion in the tech industry, with some suggesting that AI startups should consider getting Google Chrome, while others like Openai have come up with Google’s We explored the idea of developing our own web browsers that challenge our advantage.
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