Google wants right to bundle Gemini AI app with Maps, YouTube

Alphabet's Google is actively opposing a Justice Department proposal that seeks to prevent it from bundling its emerging Gemini AI service with its highly dominant Google Maps and YouTube platforms. This contention is part of Judge Amit Mehta's ongoing process to finalize remedies for Google's previously determined search monopoly, following his ruling that restricted Google's ability to enforce exclusive deals for its Search, Chrome, and Play Store. While Google argues the AI market is still developing and such bundling is a common competitive practice, Judge Mehta has expressed reservations, suggesting it could allow Google to unfairly leverage its existing market power to promote Gemini, making the impending final ruling a critical determinant for Google's AI strategy and broader competitive landscape.

Analysis

Google wants right to bundle Gemini AI app with Maps, YouTube Sadie Harley scientific editor Andrew Zinin lead editor Alphabet Inc.'s Google wants to retain the right to bundle its popular mapping and video apps with its Gemini AI service, a lawyer for the company told a federal judge Wednesday, pushing back on a Justice Department proposal that would bar the practice. "There's no notion that Google has to date gained monopoly or market power" in the artificial intelligence market, Google lawyer John Schmidtlein told Judge Amit Mehta. Likewise, "there's been no finding that Maps is a monopoly product or that YouTube is a monopoly product." Mehta, who found that Google has monopolized search and search advertising, is crafting a remedy to resolve the company's illegal conduct. In a decision last month, he ruled that Google could no longer pay companies to exclusively use its Search, Chrome web browser or Google Play Store, though he declined to bar all payments outright. Mehta's ruling incorporated aspects of proposals from Google and the Justice Department, which led to Wednesday's hearing where both sides argued for him to adopt their language in a final order. During the trial, witnesses testified that Google offers an "all-or-nothing" bundle to device manufacturers, effectively requiring they preload nearly a dozen of Google's apps if they want access to the Play Store, the largest app store on Google's Android operating system. That requirement, for example, forced Microsoft Corp. to feature Google search on its Surface Duo touchscreen device instead of its own search engine, Bing. The Justice Department argued that the same prohibitions that apply to Search, Chrome and Play should also apply to Google's Gemini, a proposal the company opposes. Google's YouTube is the TV service of choice for viewers of all ages, Bloomberg has reported. It now accounts for more than all of Walt Disney Co.'s TV networks and streaming services combined, according to recent data from Nielsen. It also generates more sales from advertising than all four broadcast networks combined, and users collectively watch over 1 billion hours of video on YouTube every day. Google Maps, meanwhile, dominates the digital mapping and navigation market by a significant margin. Last year, the service surpassed 2 billion monthly users globally, placing it among a handful of Google's most widely used products. Comparatively, Apple Inc. had "hundreds of millions" of Apple Maps users in 2020, the company has said. More than 5 million other apps and websites also rely on the Google Maps Platform to power location services like navigation and local business data. The Justice Department during the Biden administration investigated Google Maps over potential antitrust violations, but never filed a case. At Wednesday's hearing, Google's Schmidtlein argued that the AI industry is still developing and Google shouldn't be barred from using the same tactics as others in the market do. He likened Google's potential bundle of Gemini, YouTube and Google Maps with Microsoft's inclusion of its CoPilot AI within its Office productivity software. Mehta, however, expressed reservations about allowing Google to require device makers to take Gemini if they want access to YouTube or Google Maps, noting that would allow Google to use its "leverage" in the market to better position its AI service. Cameron Gower, a lawyer for the Justice Department, urged Mehta to apply the same limitations to Gemini that he ruled would apply to Chrome. Mehta didn't say when he would issue a final ruling. 2025 Bloomberg L.P. Distributed by Tribune Content Agency, LLC. Alphabet Inc.'s Google is actively resisting a Justice Department proposal to prevent it from bundling its Gemini AI service with dominant applications like Google Maps and YouTube. This forms part of Judge Amit Mehta's ongoing remedy process, following his finding that Google monopolized search and search advertising. Previous rulings already restricted Google's exclusive deals for Search, Chrome, and the Play Store. Google argues that neither Gemini nor its popular Maps (over 2 billion monthly users) and YouTube (exceeding 1 billion daily watch hours) hold monopoly status, viewing the AI market as nascent. However, Judge Mehta expressed concerns that such bundling would leverage Google's existing market power from these established platforms to unfairly position Gemini, echoing prior antitrust scrutiny. The ruling will significantly impact Google's AI strategy and competitive landscape, evidenced by the moderately negative sentiment (-0.6 for GOOGL/GOOG) and moderate market impact (0.6). A decision limiting bundling would constrain Google's ability to seamlessly integrate and cross-promote Gemini, potentially affecting its AI adoption curve and benefiting competitors.

Key Decisions for Investors

• Investors should closely monitor Judge Mehta's final ruling, as it will directly influence Google's ability to integrate Gemini across its ecosystem, thereby shaping its AI growth and competitive market positioning.
• Consider the potential implications for competitors, as a restrictive ruling could limit Google's cross-platform advantages in AI, potentially benefiting other players like Microsoft (MSFT).
• Assess the long-term regulatory environment for Alphabet (GOOGL/GOOG), as this case underscores increasing antitrust scrutiny on its dominant products and could signal broader challenges to its platform-based competitive moats.