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Apple’s AI-Powered Safari Search Plans Challenge Google’s Online Dominance

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Apple’s move to introduce AI-powered search options in its Safari browser is emerging as a significant challenge to Google’s dominance in online search, with major implications for the tech and digital advertising landscape.

According to reports, Apple is “actively looking at” overhauling Safari by integrating new AI-based search alternatives such as OpenAI and Perplexity AI. This strategy directly targets Google, whose lucrative advertising business heavily depends on iPhone users searching via Safari — a privilege for which it reportedly pays Apple about $20 billion annually.

The development rattled investors, sending shares of Google-parent Alphabet (GOOGL) down 7.3% and erasing nearly $150 billion from its market valuation. Apple’s own stock dipped 1.1% on the same day.

Apple executive Eddy Cue testified during an antitrust case against Google that search activity on Safari had declined last month for the first time, as more users began relying on AI tools for information. This trend, if sustained, could mark a fundamental shift in consumer behavior — away from traditional keyword search engines and toward conversational AI and generative search technologies.

Google responded by asserting it continues to see growth in total search queries, including those from Apple devices, attributing the increase to tools like voice and visual search and newer features like “AI Overviews” that summarize results at the top of the search page. The company also plans to integrate its Gemini AI model into Apple devices through a potential deal expected by mid-2025.

Still, analysts warn that the end of Google’s default search position on Safari could have serious repercussions. Gil Luria of D.A. Davidson noted that if advertisers begin shifting budgets to competing AI-driven search engines, Google’s market share and revenue could suffer substantially.

Meanwhile, platforms like ChatGPT and Perplexity are gaining traction rapidly. ChatGPT, for instance, logged over 1 billion weekly searches in April and reported more than 400 million weekly active users in February.

The U.S. Department of Justice, which has filed multiple antitrust suits against Google, proposes banning exclusive deals like the one between Apple and Google as part of broader efforts to increase competition in the search market.

As generative AI reshapes how people seek and consume information, Apple’s Safari updates could open the door to a new era of search — one where Google is no longer the default.

Google Cuts 200 Jobs in Global Business Unit Amid AI-Focused Shift

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Google has laid off approximately 200 employees from its global business organization, which oversees sales and partnerships, as the tech giant continues to reallocate resources toward artificial intelligence and data centers, The Information reported Wednesday.

Key Highlights:

  • The cuts were confirmed by Google, which said the changes aim to boost collaboration and enhance customer service effectiveness.

  • This follows earlier layoffs in Google’s platforms and devices division, impacting teams responsible for Android, Pixel, and Chrome.

  • Google-parent Alphabet previously cut 12,000 jobs in January 2023, about 6% of its global workforce.

Broader Tech Industry Context:

Major tech companies are trimming headcount in legacy areas while aggressively investing in AI capabilities:

  • Meta laid off 5% of its “lowest performers” while accelerating AI hiring.

  • Microsoft let go of 650 staff from its Xbox division last September.

  • Amazon and Apple have also enacted selective layoffs across various departments.

These actions signal a strategic pivot across the tech industry to optimize cost structures and prioritize innovation in AI, cloud infrastructure, and machine learning tools.

U.S. Seeks Breakup of Google’s Ad-Tech Business After Judge Finds Illegal Monopoly

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The U.S. Department of Justice (DOJ) is pushing to break up Google’s advertising technology empire, proposing that the tech giant be forced to sell its AdX ad exchange and DFP publisher ad-server platform following a federal judge’s ruling that Google illegally monopolized the online ad-tech market.

In a court filing late Monday, the DOJ stated that such divestitures are essential to restore fair competition in the ad-exchange and publisher ad-serving sectors, where Google — a subsidiary of Alphabet Inc. — has long held dominant positions.

U.S. District Judge Leonie Brinkema ruled last month that Google had “willfully acquired and maintained monopoly power” in both markets. The case marks another major legal setback for Google, coming after a separate ruling last year found the company guilty of maintaining an illegal monopoly in online search.

A September trial date has been scheduled to determine final remedies. While Google has said it is open to behavioral changes, such as giving competitors access to real-time bidding data, the company opposes any forced divestitures, arguing such a move lacks legal standing and would hurt advertisers and publishers alike.

“This goes well beyond the Court’s findings,” said Lee-Anne Mulholland, Google’s VP of Regulatory Affairs. “It would harm publishers and advertisers, and has no basis in law.”

AdX (Ad Exchange) is Google’s real-time ad marketplace, while DFP (DoubleClick for Publishers) is used to manage and deliver ads on websites. Together, they are key tools that allow digital publishers to monetize their content, and their dominance has drawn increasing antitrust scrutiny.

In Europe, Google previously offered to sell AdX to settle an EU investigation, but publishers rejected the offer, calling it inadequate.

Alphabet’s shares fell 1.1% in premarket trading on Tuesday following the DOJ’s filing.