Samsung Receives a Substantial Payment from Google for Preinstalling Gemini
Google’s Antitrust Battle and its Deal with Samsung
Overview of the Situation
Recent testimonies in Google’s ongoing antitrust trial have brought to light significant financial agreements between Google and Samsung. It has been revealed that Google pays Samsung a considerable monthly sum to preinstall the Gemini AI application on Samsung devices. This situation comes amid broader concerns about Google’s dominance in the search engine market, which a judge recently classified as an illegal monopoly.
Payments to Samsung
Peter Fitzgerald, who is the vice president of platforms and device partnerships at Google, disclosed during the trial that the financial arrangements between Google and Samsung began in January. This start date coincided with a determination that Google had breached antitrust laws, partly due to similar agreements with major companies like Apple and Samsung.
When Samsung unveiled its Galaxy S25 series in January, the Gemini AI application was set as the default assistant for the device when users long-pressed the power button — a shift away from Samsung’s own Bixby assistant.
Competitive Landscape
Fitzgerald’s testimony also mentioned that other companies, including Microsoft and Perplexity, have expressed interest in forming similar partnerships with Samsung to have their AI applications preinstalled on devices. Notably, a lawyer from the Department of Justice (DOJ) questioned Google’s timing in presenting letters aimed at modifying its agreement with phone manufacturers, claiming they were sent just before the trial commenced.
Additionally, internal documents shared during the proceedings indicated that Google had considered creating more restrictive distribution agreements. These might have required partners to preinstall Gemini alongside Google’s search engine and Chrome browser.
Terms of the Agreement
According to reports, the agreement between Google and Samsung spans two years. It consists of both fixed monthly payments and a percentage of subscription revenues for the Gemini AI application that Google provides to Samsung. A DOJ lawyer described the monthly payment as an “enormous sum,” although specific figures remain undisclosed.
Potential Penalties for Google
The anticipated outcomes from the DOJ hearings could significantly impact Google’s operational strategies in the future. If the DOJ prevails, Google may be prohibited from entering into similar default placement agreements and could be compelled to sell its Chrome browser. Furthermore, it might be required to license the majority of the data that fuels its search engine. Google, however, contends that it should only relinquish its default placement arrangements.
Additional Notes
It is worth noting a correction made recently. Earlier reports stated that Samsung received a share of the advertisement revenue from the Gemini app, but it has now been clarified that Samsung instead receives a portion of the subscription revenue generated by the app.
Conclusion
As the trial unfolds, the implications of Google’s deals with Samsung and other manufacturers will likely continue to attract scrutiny, both in the realm of legalities and the competitive dynamics of the tech industry. The outcome could redefine how tech giants collaboratively work with device manufacturers in the evolving landscape of artificial intelligence.
