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Google avoids being dismantled after US court battle—and it’s down to the rise of AI

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Google avoids being dismantled after US court battle—and it’s down to the rise of AI


Credit: Unsplash/CC0 Public Domain

A year ago, Google faced the prospect of being dismantled. Today, artificial intelligence (AI) and a new court judgment has helped it avoid this fate. Part of the reason is that AI poses a grave threat to Google’s advertising revenues.

“Google will not be required to divest Chrome; nor will the court include a contingent divestiture of the Android operating system in the final judgment,” according to the decision.

Google must share certain data with “qualified competitors” as deemed by the court. This will include parts of its search index, Google’s inventory of web content. Judge Mehta will allow Google to continue paying companies like Apple and Samsung to distribute its search engine on devices and browsers. But he will bar Google from maintaining exclusive contracts.

The history of this decision goes back to a 2024 ruling by federal judge Amit Mehta. It found that Google maintained a monopoly in the , notably by paying billions to companies including Apple and Samsung to set Google as the default search engine on their devices.

Almost a year later, the same US judge issued his final ruling, and the tone could not be more different. Google will not be broken up. There will be no choice screen on new phones.

The nature of the search engine market, where more users generate more data, and more data improves search quality, made it impossible for competitors to challenge Google, the court found in 2024.

The 2024 ruling itself was controversial. While high quality data enables a dominant firm to extract more profit from consumers, it also allows it to provide a better service. Decades of research in economics has shown that determining which effect is more important is not straightforward.

At the time, the US Department of Justice deemed the issue so serious that it considered breaking up Google as the only viable solution. For instance, it suggested forcing the company to sell its web browser, Google Chrome.

The government also proposed forcing device manufacturers to offer users a choice of search engines during set up, and compelling Google to share most of its data on user behavior and ad bidding, where advertisers compete in auctions to get their ads shown to users for a specific search query or audience. These so-called “remedies,” measures Google would be required to implement to end its monopoly, aimed to restore competition.

Limited sharing

So, what has changed in a year to so radically change the perception of Google’s market dominance? The main answer is AI—and specifically, large language models (LLMs) like ChatGPT, Claude, and Google’s own Gemini. As users increasingly turn to LLMs for web searches, Google responded by placing AI-generated summaries at the top of its search results.

The way people navigate the internet is quickly evolving, with one trend reshaping the business models of online companies: the zero-click search. According to a Bain & Company survey, consumers now default to accepting AI-generated answers without further interaction. The data is striking: 80% of users report being satisfied with AI responses for at least 40% of their searches, often stopping at the summary page.

Threat to ad revenue

This AI-driven shift in consumer behavior threatens not only Google’s business model but also that of most internet-based companies. Advertising accounts for roughly 80% of Google’s revenue, earned by charging companies for prominent placement in search results and by leveraging its vast amount of user data to sell ad space across the web. If users stop clicking links, this revenue stream evaporates.

More importantly for this ruling, the market Google once monopolized may no longer be the relevant one. Today, Google’s primary potential competitors in search are not Microsoft Bing, but AI models like ChatGPT, Claude, and Perplexity. In the global race for AI dominance, the outcome is far from certain.

From an antitrust standpoint, there is little justification for penalizing Google now or forcing it to cede advantages to competitors. What would be the benefit for consumers of forcing Google to accept the £24.6 billion offer from Jeff Bezos’ Perplexity AI to buy the Chrome browser?

In essence, the judge acknowledges that Google monopolized the search engine market for a decade but concludes that the issue may resolve itself in the years ahead.

This situation echoes the first major monopolization case: Internet Explorer. For years, European and US regulators battled Microsoft to dismantle the dominance of its web browser, which was bundled with the then-dominant Windows 95 operating system.

By the time all appeals were exhausted, however, the monopoly had vanished. Internet Explorer was partly a victim of the rise of smartphones, which did not rely on Windows. The new king in town was a newcomer: a certain Google Chrome.

How you view the economic and political power of tech giants will shape which lesson you draw from this story. An optimistic view I suggested (with the economist Jana Friedrichsen) is that winner-takes-all markets can intensify competition through innovation. In such markets, incremental investment is not enough; to challenge Google, a competitor must offer a vastly superior product to capture the entire market.

Precisely because they ruthlessly defend their monopoly positions, tech giants show competitors that the potential gains from radical innovations are massive. The pessimistic view, however, is that years of dominance have left these firms largely unaccountable, which could embolden them in future.

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DHS Wants a Fleet of AI-Powered Surveillance Trucks

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DHS Wants a Fleet of AI-Powered Surveillance Trucks


The US Department of Homeland Security is seeking to develop a new mobile surveillance platform that fuses artificial intelligence, radar, high-powered cameras, and wireless networking into a single system, according to federal contracting records reviewed by WIRED. The technology would mount on 4×4 vehicles capable of reaching remote areas and transforming into rolling, autonomous observation towers, extending the reach of border surveillance far beyond its current fixed sites.

The proposed system surfaced Friday after US Customs and Border Protection quietly published a pre-solicitation notice for what it’s calling a Modular Mobile Surveillance System, or M2S2. The listing includes draft technical documents, data requirements, and design objectives.

DHS did not respond to a request for comment.

If M2S2 performs as described, border patrol agents could park their vehicles, raise a telescoping mast, and within minutes start detecting motion several miles away. The system would rely heavily on so-called computer vision, a kind of “artificial intelligence” that allows machines to interpret visual data frame by frame and detect shapes, heat signatures, and movement patterns. Such algorithms—previously developed for use in war drones—are trained on thousands if not millions of images to distinguish between people, animals, and vehicles.

The development of M2S2 comes amid the Trump administration’s sweeping crackdown on undocumented immigrants across the US. As part of this push, which has sparked widespread protests and condemnation for the brutal tactics used by immigration authorities, Congress boosted DHS’s discretionary budget authority to roughly $65 billion. The GOP’s “One Big Beautiful Bill” allocates over $160 billion for immigration enforcement and border measures—most of it directed to DHS—with the funds scheduled to be distributed over multiple years. The administration has sought to increase DHS funding by roughly 65 percent, proposing the largest expansion in the agency’s history to fund new border enforcement, detention capacity, and immigration surveillance initiatives.

According to documents reviewed by WIRED, locations of objects targeted by the system would be pinpointed on digital maps within 250 feet of their true location (with a stretch goal of around 50 feet) and transmit that data across an app called TAK—a government-built tactical mapping platform developed by the US Defense Department to help troops coordinate movements and avoid friendly fire.

DHS envisions two modes of operation: one with an agent on site and another where the trucks sit mostly unattended. In the latter case, the vehicle’s onboard AI would conduct the surveillance and send remote operators alerts when it detects activity. Missions are to be logged start to finish, with video, maps, and sensor data retained for a minimum of 15 days, locked against deletion “under any circumstances.”



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Sora Has Lost Its App Store Crown to … Dave’s Hot Chicken

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Sora Has Lost Its App Store Crown to … Dave’s Hot Chicken


Since its launch on September 30, OpenAI’s Sora app has dominated the iOS App Store charts, thanks to its easy breezy AI video generation and an initially loose interpretation of copyright laws. On Friday, its reign came to an end. Your new champion is … Dave’s Hot Chicken.

Yes! Not ChatGPT or Gemini or Threads or any of the other usual suspects. Dave’s Hot Chicken now rules over the App Store, where its slack-beaked, bug-eyed mascot icon expresses appropriate surprise at its ascent. How did it do it? How did it break the grasp of OpenAI’s golem TikTok? With something people love even more than large language models: free food.

“They’re running a promotion for free sliders in celebration of Drake’s birthday,” says Adam Blacker, PR director of the app analytics firm Apptopia. “Free food always gets the downloads flowing.”

If you’re wondering what Drake has to do with any of this, he invested in the fast casual restaurant chain in 2021, and presumably made a mint when the company sold a majority stake to private equity firm Roark Capital for a reported $1 billion. For the third consecutive year, the company gave away one (1) free slider to anyone who has downloaded the app in honor of Drake’s birthday. (The rapper and Raptors fan turns 39 today; the giveaway was Thursday.)

“We’re celebrating a celebrity that’s popular and that’s currently relevant, and also getting food in people’s mouths,” says Dave’s Hot Chicken chief technology officer Leon Davoyan.

And it truly is a lot of people. On a typical week, Davoyan says, Dave’s sees between 20,000 and 25,000 new sign-ups to its loyalty database. On Thursday alone the promotion drove 343,531 new accounts—a more than 10 percent bump to the brand’s overall membership in a single day, according to the CTO.

It was enough to knock Sora out of the top slot for the first time since October 3, an impressive stretch for an app that’s still invite-only. In the first 23 days since it launched, Sora racked up 3.2 million iOS downloads in the US, according to app analytics company Sensor Tower. That’s a much faster pace than even ChatGPT, which while similarly viral notched 2.3 million US downloads in the same time. (Sora is not yet available in the Google Play Store, but it’s incoming.) OpenAI declined to comment.

While Sora is likely to reclaim the top spot after the Drake promotion dies down, Dave’s Hot Chicken should continue reaping the benefits of its giveaway. Last year, according to Sensor Tower, downloads of the app in the four weeks following the same marketing push were more than 50 percent higher than the month leading up to it. All those free sandwiches are worth the long-term gains.



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This Upgraded SteelSeries Gaming Headset Is $80 Off

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This Upgraded SteelSeries Gaming Headset Is  Off


In the world of high-end gaming headsets, the SteelSeries Arctis Nova Pro Wireless (8/10, WIRED Recommends) stands out with an impressive feature set and excellent audio. Right now, you can pick up the wireless model for just $300 from Amazon, an $80 discount off the usual price. That might sound like a lot for gaming headphones, but these offer quite a lot for the price.

Photograph: Eric Ravenscraft

SteelSeries

Arctis Nova Pro Wired/Wireless Headset

This luxurious gaming headset is a great pick for daily gamers who want excellent sound quality and high-end comfort. They have big drivers that make sounds in-game pop, and an excellent mic with noise-canceling so good your friends won’t even know you have a dog. They’re super comfortable, with the SteelSeries signature ski-goggle strap to take the pressure off your head.

While they’re built for gaming, they also sound great listening to music or watching movies. They have a nice, punchy sound profile and spatial audio support for a more immersive experience. If you’re on a PC, the SteelSeries GG software gives you a ton of options for balancing your audio across multiple sources, and you can even set individual EQ profiles for different applications.

By including a USB DAC for wireless connectivity, the Arctis Nova Pro can achieve some unique and compelling features not found on other headsets. The range is impressive, thanks to more room for the antenna and power than you’d find in a smaller USB dongle. You can adjust the volume and audio mix from a generous knob on the front, and it has multiple audio inputs for switching between consoles.

Best of all, the hub can charge a spare battery for the headset, giving you essentially infinite run time as long as you’re seated at the computer. When you run down the 25 or so hours on one charge, just swap out the battery and the headset will reconnect and pick up where you left off. It’s the perfect feature for anyone with battery concerns, but don’t worry, you can also charge the headset via USB-C directly.

At $300, these aren’t cheap, and there are better gaming headsets for single-console or casual gamers, as well as an even more expensive model, but I think these are a great middle ground for anyone with a budget and a Steam backlog.



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