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Google will return to federal court Friday to fend off the U.S. Justice Department’s attempt to topple its internet empire at the same time it’s navigating a pivotal shift to artificial intelligence that could undercut its power.The legal and technological threats facing Google are among the key issues that will be dissected during the closing arguments of a legal proceeding that will determine the changes imposed upon the company in the wake of its dominant search engine being declared as an illegal monopoly by U.S. District Judge Amit Mehta last year.Brandishing evidence presented during a recent three-week stretch of hearings, Justice Department lawyers will attempt to persuade Mehta to order a radical shake-up that includes a ban on Google paying to lock its search engine in as the default on smart devices and an order requiring the company to sell its Chrome browser.Google lawyers are expected to assert only minor concessions are needed, especially as the upheaval triggered by advances in artificial intelligence already are reshaping the search landscape, as alternative, conversational search options are rolling out from AI startups that are hoping to use the Department of Justice’s four-and-half-year-old case to gain the upper hand in the next technological frontier.“Over weeks of testimony, we heard from a series of well-funded companies eager to gain access to Google’s technology so they don’t have to innovate themselves,” Lee-Anne Mulholland, Google’s vice president of regulatory affairs, wrote in a blog post earlier this month. “What we didn’t hear was how DOJ’s extreme proposals would benefit consumers.”After the day-long closing arguments, Mehta will spend much of the summer mulling a decision that he plans to issue before Labor Day. Google has already vowed to appeal the ruling that branded its search engine as a monopoly, a step it can’t take until the judge orders a remedy.While both sides of this showdown agree that AI is an inflection point for the industry’s future, they have disparate views on how the shift will affect Google.The Justice Department contends that AI technology by itself won’t rein in Google’s power, arguing additional legal restraints must be slapped on a search engine that’s the main reason its parent company, Alphabet Inc., is valued at $2 trillion.Google has already been deploying AI to transform its search engine into an answer engine, an effort that has so far helped maintain its perch as the internet’s main gateway despite inroads being made by alternatives from the likes of OpenAI and Perplexity.The Justice Department contends a divestiture of the Chrome browser that Google CEO Sundar Pichai helped build nearly 20 years ago would be among the most effective countermeasures against Google continuing to amass massive volumes of browser traffic and personal data that could be leveraged to retain its dominance in the AI era. Executives from both OpenAi and Perplexity testified last month that they would be eager bidders for the Chrome browser if Mehta orders its sale.The debate over Google’s fate also has pulled in opinions from Apple, mobile app developers, legal scholars and startups.Apple, which collects more than $20 billion annually to make Google the default search engine on the iPhone and its other devices, filed briefs arguing against the Justice Department’s proposed 10-year ban on such lucrative lock-in agreements. Apple told the judge that prohibiting the contracts would deprive the company of money that it funnels into its own research, and that the ban might even make Google even more powerful because the company would be able to hold onto its money while consumers would end up choosing its search engine anyway. The Cupertino, California, company also told the judge a ban wouldn’t compel it to build its own search engine to compete against Google.In other filings, a group of legal scholars said the Justice Department’s proposed divestiture of Chrome would be an improper penalty that would inject unwarranted government interference in a company’s business. Meanwhile, former Federal Trade Commission officials James Cooper and Andrew Stivers warned that another proposal that would require Google to share its data with rival search engines “does not account for the expectations users have developed over time regarding the privacy, security, and stewardship” of their personal information.The App Association, a group that represents mostly small software developers, also advised Mehta not to adopt the Justice Department’s proposed changes because of the ripple effects they would have across the tech industry.Hobbling Google in the way the Justice Department envisions would make it more difficult for startups to realize their goal of being acquired, the App Association wrote. “Developers will be overcome by uncertainty” if Google is torn apart, the group argues.Buy Y Combinator, an incubator that has helped create hundreds of startups collectively worth about $800 billion filed documents pushing for the dramatic overhaul of Google, whose immense power has discouraged venture capitalists from investing in areas that are considered to be part of the company’s “kill zone.”Startups “also need to be able to get their products into the hands of users, free from restrictive dealing and self-preferencing that locks up important distribution channels. As things stand, Google has locked up the most critical distribution channels, freezing the general search and search text advertising markets into static competition for more than a decade,” Y Combinator told Mehta. Michael Liedtke, AP Technology Writer
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E-Commerce
Graduating from high school is a huge rite of passage, but entering the working world, especially in uncertain economic times, can be intimidating. According to a new study, a big chunk of high school graduates say they don’t exactly feel prepared for post-school challenges, especially when it comes to a few necessary life skills. And many feel pressured to lean into influencer culture as a way to make ends meet. The national survey, which was commissioned by K12, an accredited online K through 12 school, asked 300 recent high school graduates and 200 parents about how confident they were upon entering the real world. Notably, less than a third (32%) of recent grads said they felt their high school years had equipped them. Teen boys felt less prepared than girls, with 23% rating their “real world” confidence at 3 or below on a scale of 1 to 10, with 10 being the most confident. Meanwhile, 16% of female grads said the same. Questions on where their confidence was lacking highlighted a few areas where recent grads felt most insecure, which, somewhat surprisingly, seemed to be the very rites of passage that young adults once looked forward to: 34% said they didn’t feel confident about managing their own money, 27% didn’t feel ready to live independently, and 26% cited communicating effectively as a concernperhaps a display of how online communication has peaked in recent years in lieu of in-person communication. Recent grads’ biggest fears echoed those insecurities, with 44% saying that they were worried about becoming financially secure. In addition to a challenging job market and an uncertain economy, those grads largely felt that their high schools didn’t equip them with some key life skillsmainly, financial skills. A staggering 62% said they wish they’d learned how to do their taxes, 60% said the same of being taught about credit scores and loans, and 51% also noted that they wished they had learned how to invest. Given many high school grads don’t feel quite ready for the real world, it makes sense that most teens said they plan on attending college after graduation: 90% said college is in their future. However, there was another notable trend that grads are likely to lean into after high school: becoming an influencer. More than a third, or 34% said they felt pressure from social media to become content creators or entrepreneurs, which is hardly surprising given just how common the side gig, or even full-time career, has become. But interestingly, it’s not just social media that’s steering teens toward content creation. According to the report, 56% said their high school actually encouraged students to “explore alternative career paths.” Those alternatives were things like trades, gig work, and yes, content creation. Given the lives of young adults today are so broadly shaped by social media and influencer culture, the pull to dive into content creation makes perfect sense. Still, teens are rightly worried about whether or not they have the financial literacy to turn influencing into income.
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E-Commerce
Xiaomi rolled out its new sports utility vehicle in Beijing on Thursday, as the firm best known for smartphones and consumer electronics gears up to further challenge Tesla in the world’s largest auto market. Xiaomi launched the YU7 at 13 of its Beijing showrooms and will start taking orders for the vehicle in July. It is keen to repeat the success of the sporty SU7 sedan, which launched last year and has outsold Tesla’s Model 3 on a monthly basis since December. Analysts have said the YU7 could pose a major threat to Tesla’s best-selling Model Y but its launch comes at a time when Xiaomi, a relative newcomer to China’s highly-competitive EV market, has seen new EV orders fall after a series of controversies. Chinese authorities have been investigating a fatal highway crash at the end of March involving an SU7 in driving-assistance mode and Xiaomi has apologised for “not clear enough” marketing after customer complaints of false advertising. Liu Jiaxing, a 34-year-old tech worker, was among the first visitors to Xiaomi’s flagship showroom in Beijing Oriental Plaza on Thursday morning, eager to catch a glimpse of the emerald green YU7. Liu said he was fond of the styling and colour as well as the fact that Xiaomi vehicles connect with the firm’s personal gadgets and smart home products, which he felt pointed to how local brands understood Chinese consumers better than their foreign counterparts. “I used to be more prone to U.S., German, and French car marques, but the fast progress of China’s EV sector prompts me to focus more on the products rather than brands,” he said. Another visitor was Tom van Dillen, managing partner at German management consultancy Greenkern in Beijing, who said he was not a fan of some of the YU7’s intelligent features, which he described as “unnecessary,” but said the YU7 was a formidable challenger to the Model Y. He cited a “physical ecosystem advantage in the showroom where there is a dedicated area with accessories that only fit into Xiaomi cars” and their competitive price. Xiaomi has said that it will only announce the YU7’s pricing in July. HSBC Qianhai estimated in a note last week that the new SUV will be priced between 230,000 yuan and 330,000 yuan ($31,989-$45,898) and that Xiaomi could ship 100,000 YU7 units this year and 249,000 units in 2026. The Model Y is priced from 263,500 yuan in China. ($1 = 7.1899 Chinese yuan renminbi) Qiaoyi Li and Alessandro Diviggiano, Reuters
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E-Commerce
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