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Perplexity Caught in Crossfire as DOJ and Google Battle Over Search Dominance

By  |  December 18, 2024

The Department of Justice (DOJ) has set its sights on Dmitry Shevelenko, Chief Business Officer of AI search company Perplexity, as part of its high-profile antitrust battle against Google. The DOJ is investigating Google’s dominance in the search industry and exploring potential penalties following an August court ruling that labeled the tech giant a search monopoly. While Google is appealing the decision, the DOJ is considering remedies that could include the separation of Chrome from Google’s broader ecosystem.

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    According to a recent court filing, the DOJ plans to question Shevelenko about generative AI’s role in shaping “Search Access Points” — gateways such as Google Chrome that facilitate internet searches — and the challenges these platforms pose for market entry and data sharing. Generative AI tools like Perplexity and OpenAI’s ChatGPT Search have introduced alternatives to traditional search engines by offering detailed answers to complex queries. Google, in turn, has responded with its own AI-driven search features, such as AI Overviews, which provide generated answers alongside traditional search results.

    Perplexity has drawn significant attention in the case due to its potential as a rising competitor in the search market. Valued at $9 billion, the company represents a new wave of innovation that could disrupt Google’s dominance. However, it remains unclear from court filings how Shevelenko’s testimony will directly support the DOJ’s case. The Justice Department’s broader focus appears to rest on claims that Google’s monopolistic practices have stifled competition in the search industry, potentially justifying stricter penalties.

    Perplexity Faces Pressure from Both Sides

    Perplexity finds itself navigating legal demands from both the DOJ and Google as the case unfolds. In October, Google subpoenaed the AI search company for internal documents to bolster its argument that viable competitors exist in the search market. However, Google has accused Perplexity of failing to produce any documents despite its agreement to comply with 12 out of 14 document requests.

    According to a statement from Google, the lack of compliance after two months is “unjustified,” prompting frustrations from the company. Perplexity, on the other hand, claims it is carefully reviewing the scope of Google’s demands. The company has agreed to provide licensing agreements related to AI training but has pushed back on broader requests for all its licensing agreements, citing concerns about the burden of fulfilling such a sweeping demand. Perplexity has requested further discussions with Google to refine the scope of the requests.

    Source: Next Unicorn