The transformative power of generative AI has reshaped not only technology but also the legal landscape, as evidenced by a landmark ruling in Google’s antitrust case. Judge Amit Mehta explicitly stated that “the emergence of Gen AI changed the course of this case,” leading him to reject the government’s proposal to break up the search giant.
In his judgment, Mehta positioned AI chatbots like ChatGPT and Perplexity AI as a credible long-term threat to Google’s search monopoly. This future competition, he argued, lessened the need for a drastic structural remedy like forcing Google to sell its Chrome browser. This reasoning marks one of the first times a major antitrust decision has been so directly influenced by the potential of nascent AI technology.
This “ChatGPT effect” provided Google with a powerful defense against the Department of Justice’s most stringent demands. While the company was still found to have operated an illegal monopoly, the court’s focus shifted from dismantling the company to imposing behavioral remedies, such as data sharing and ending exclusivity deals, to manage its power in a new competitive era.
The ruling sets a significant precedent for other Big Tech companies facing antitrust scrutiny, particularly those heavily investing in AI. It suggests that demonstrating a dynamic and evolving market, driven by technological innovation, can be a successful strategy to fend off the most severe regulatory penalties, even in the face of a guilty verdict on monopolization.