EU takes action again, Google and Samsung face antitrust investigation for AI cooperation

Samsung Electronics unveiled its latest foldable smartphones, the Galaxy Z Fold 6 and Flip 6, at its Galaxy Unpacked event in Paris last week. Like the previous Galaxy S24 series, the two phones come pre-installed with Google's Gemini app.

It is understood that Gemini is Google's generative AI tool. On Samsung's 2024 flagship model, users can activate the Gemini interface through the "Hey Google" voice command or by swiping up from the bottom of the screen.

These Galaxy phones mark the advent of smartphones with built-in AI. For example, when users come across something of interest while browsing the web or social media, they can quickly search for relevant information by simply drawing a circle on the screen, without having to open various search apps. This feature, called "circle search," is made possible by close collaboration with Google and AI services such as Gemini Nano and Gemini Pro.

However, the partnership has now attracted the attention of the European Commission's antitrust regulator. According to Reuters, Samsung Electronics received an eight-page questionnaire today asking about the launch of a smartphone equipped with Google's artificial intelligence service Gemini.

The EU aims to investigate whether there was any unfair conduct in the integration of Gemini into Samsung Galaxy phones, such as stifling competition from other AI companies.

The investigation is not unfounded, as the entire Google suite of apps is connected to Gemini. For example, when Gemini is asked to find tourist spots, it defaults to using Google Maps and showing Google's travel and booking information. The EU is now investigating whether the AI ​​services resulting from this partnership violate antitrust laws, essentially asking Samsung Electronics whether it has considered using an AI chatbot from another company instead of Google.

The two companies could face fines if the European Union determines that the contract between Google and Samsung Electronics violates the infamous Digital Markets Regulation, which has been used to force Apple to open its iOS ecosystem to third-party apps.

Generally speaking, companies that violate the Digital Markets Act can be fined up to 10% of their global sales, an astronomical figure for companies like Google or Samsung.