Photo credit: www.theverge.com

Perplexity’s Testimony Raises Questions on Google’s Dominance and Browser Future

During a recent court trial concerning Google’s search monopoly, Dmitry Shevelenko, the Chief Business Officer of AI company Perplexity, expressed his hesitance to testify due to concerns about potential repercussions from Google. However, upon receiving a subpoena, he utilized the opportunity to propose a business venture: acquiring Chrome, Google’s widely-used web browser.

Should Judge Amit Mehta align with the Justice Department’s perspective, he could mandate that Google divest its beloved browser, which is also the foundation of the open-source Chromium project utilized by various other browsers. Google has cautioned that such a decision could be precarious, warning that a new owner of Chromium could impose fees or fail to maintain the browser adequately, thus impacting the entire industry.

In court, Shevelenko was assertive about Perplexity’s capability to manage a browser of Chrome’s scale without compromising its quality or introducing costs. When queried by an attorney about any potential competitors to Google in effectively operating a browser, he confidently stated, “I think we could do it.”

This isn’t Perplexity’s first foray into acquiring high-profile tech platforms facing challenges from the U.S. government; the company has also indicated interest in acquiring TikTok, which is grappling with ongoing national security scrutiny linked to its ownership by China’s ByteDance.

Although summoned as a witness by the Justice Department to illustrate how Google’s search dominance impacts emerging generative AI firms, Shevelenko took the stand to voice his grievances against Google. He discussed the complexities of the Android operating system that make it difficult for users to set Perplexity as their default AI assistant, admitting that he struggled through the setup process, even with assistance from a colleague, and acknowledged his preference for Apple’s iPhone.

Shevelenko described how, despite users setting Perplexity as their default assistant, it remained inferior to Google’s service due to the operational model that requires manual activation rather than a voice command.

Furthermore, he emphasized the pressure on companies entering partnerships with Google, stating they effectively have a “gun to [their] head.” Shevelenko recounted attempts to negotiate with various phone manufacturers to feature Perplexity as a preloaded search engine or default assistant, but these talks often reached an impasse due to fears of jeopardizing existing revenue agreements with Google.

In a striking assessment, Shevelenko detailed how a certain unnamed company, presumed to be Motorola according to public sources, agreed to incorporate Perplexity onto its devices but refrained from setting it as the default due to Google’s constraints. The collaborative efforts between Perplexity and the manufacturer to find alternative solutions were ultimately thwarted by the binding agreements with Google.

Shevelenko credited Judge Mehta’s preceding ruling on Google’s monopolistic practices as a catalyst that allowed Perplexity to initiate discussions with manufacturers. The current scrutiny on Google has prompted companies to at least entertain the possibility of divergent arrangements.

Despite his aspirations, Shevelenko appeared cautious regarding the fundamental idea of forcing Google to divest Chrome. Ahead of his court appearance, he shared sentiments on LinkedIn from his team, articulating apprehensions over breaking Google into smaller entities. Instead, Perplexity seems mainly focused on dismantling Google’s search distribution agreements. Shevelenko voiced concerns over potential ownership of Chrome by other companies, warning that if entities like OpenAI were to acquire it, they might abandon the open-source principles of Chromium, jeopardizing its future. He stated, “We wouldn’t want a remedy that cripples Google’s ability to keep doing that,” reflecting a nuanced understanding of the complexities involved in the case.

Source
www.theverge.com