Google has acknowledged that it has been making substantial monthly payments to Samsung to preinstall its AI app, Gemini, on Samsung devices. This revelation comes during ongoing federal antitrust proceedings led by the Justice Department, which accuses Google of engaging in monopolistic practices. Since January 2024, Google has been transferring significant payments, although the exact amounts remain undisclosed.
According to Peter Fitzgerald, Google’s Vice President of Platforms and Device Partnerships, this payment agreement is structured to last two years, providing a fixed monthly sum for each device featuring Gemini as preinstalled software. Additionally, Google will compensate Samsung with a portion of the advertising revenue generated through the Gemini app. This isn’t the first incident of Google’s financial arrangements with Samsung.
Between 2020 and 2023, Google reportedly paid Samsung $8 billion to set its services such as the Google Play Store, Assistant, and Search as default on Samsung devices. The court has found such payments troubling, suggesting they may contravene antitrust laws. In reaction to these allegations, Fitzgerald noted that competitors, including Microsoft, Meta, and OpenAI, have also approached Samsung with offers to make their own AI applications default.
He emphasized that the new agreement with Samsung allows for flexibility, enabling Samsung to install other AI applications along with Gemini, reducing the exclusivity originally required for Google Search and Assistant. However, internal documents revealed in the trial suggest that Google may extend its contract with Samsung through 2028. This could solidify Gemini’s position as a primary AI application on future Galaxy devices, potentially undermining competition and skewing user preference toward Gemini.
The Justice Department has proposed measures to restrain Google’s practices and reshape user interactions with its products, which could greatly impact the tech landscape.