GOOGL
💰 Google is reportedly paying Samsung substantial monthly fees to pre-install its Gemini AI application on Samsung devices, according to court testimony.
🤝 The deal includes fixed monthly payments per device and a revenue-sharing agreement based on ads shown within the Gemini app, highlighting Google’s push for AI distribution.
⚖️ This practice comes to light during the Department of Justice’s antitrust case against Google, adding complexity to the regulatory challenges the company faces, contributing to its relatively lower valuation.
@bernardodegarcia:
“Let’s finish now with Google. Apparently, it pays Samsung a huge sum of money each month to pre-install Google’s generative AI application, Gemini, on its phones and devices, according to court testimony. Despite the company’s practice of paying for installations having been found twice to violate the law, the company began paying Samsung for Gemini in January, according to Pitt Fitzgeral, Google’s Vice President of Platforms and Device Partnerships, who testified yesterday in Federal Court in Washington as part of the Department of Justice’s antitrust case. The contract, which will run for at least 2 years, establishes fixed monthly payments for each device that pre-installs Gemini and pays Samsung a percentage of the revenue Google earns from ads within the application, Fitzgeral told Judge Amit Mehta, who oversees the case. As we are seeing, it’s not being easy for Google. It’s trading, it’s the MAANG stock trading the cheapest, but it’s somewhat normal, quote-unquote, because there are several fears due to these two anti-regulatory lawsuits that we will see. The first in August 2025 and the next in February 2026. Don’t quote me on that, but roughly in 2026, the first quarter.”
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