In today’s big story, we’re looking at how the outcome of Google’s antitrust trial will have massive implications on the entire tech industry.

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Google’s landmark antitrust case wraps up in Washington, DC, this week with closing arguments. It’s not only the culmination of a yearslong battle between regulators and one of the biggest players in tech. It could also have a lasting effect on the wider industry, Business Insider’s Geoff Weiss writes.

For those who need a refresher: The case is focused on whether the deals Google cut to be the default search engine on devices were legal violations.

The Department of Justice called Google’s tactics “anticompetitive and exclusionary.” Google’s response: “People don’t use Google because they have to — they use it because they want to.”

What’s not up for debate is how much money Google has spent maintaining its spot as a default browser. Court documents revealed Google paid $20 billion in 2022 to be Safari’s default search engine.

That might seem like a lot of dough to tout something people are dying to use. However, Google CEO Sundar Pichai testified the payments were partly about getting phone manufacturers to up their security game.

The case’s outcome could range from clearing Google to forcing it to make structural changes (although that’s a longshot).

But even if the outcome is somewhere in the middle, which antitrust experts suggested to The New York Times, there could be big knock-on effects.

Comparisons have been drawn between Google’s antitrust case and the one Microsoft faced in 1998. The verdict of breaking up Microsoft was eventually overturned, but it arguably created opportunities for others, including Google, to grow.

Now Google’s ruling comes amid a tech revolution both Big Tech and regulators are eyeing: AI.

One VC recently told me they view AI like an upside-down pyramid. The small tip at the bottom represents the handful of large-language models on which the rest of the industry will be built.

That setup means a few players hold incredible power, and Big Tech has undoubtedly noticed.

Google has Gemini. Microsoft has backed OpenAI. Amazon wants in on the ground floor. And Apple is reportedly looking to partner with someone.

But those plans, which tech companies have invested heavily in pursuing, could be at risk if Google faces a setback in the courtroom.

🔔 Before the opening bell: US stock futures climb in premarket trading as investors gear up for Friday’s April jobs report.

2. Ken Griffin’s Citadel keeps winning. The Miami-based manager’s flagship Wellington fund finished April up 2% and remains tops among large multistrat funds in performance this year. Here’s how other top firms like Schonfeld and Millennium performed.

3. It’ll take a recession for the Fed to start cutting. That’s according to GlobalData TS Lombard chief US economist Steven Blitz, who said in a research note on Wednesday that Chair Jerome Powell’s latest comments suggest he’s taking a reactive approach to slashing interest rates. “By not cutting now, pre-emptive is off the table,” Blitz wrote.

2. Amazon really wants people talking about generative AI. According to a leaked memo, the company aims to fill up to 80% of its Global Summit events with discussions about generative AI. An Amazon spokesperson told BI that customer demand drove the new guidance.

3. Apple discloses its biggest-ever stock buyback. The tech giant said on Thursday that it plans to invest $110 billion in its own shares. Apple’s quarterly earnings beat expectations, even though overall sales of its flagship product — the iPhone — dropped 10% year-over-year in the first three months of 2024.

2. Your guide to negotiating after a job offer. A former VP of HR at Microsoft shared the 10 things you should always negotiate when you land a job offer, from a signing bonus to more remote work.

3. Sony and Apollo are bidding big for Paramount. The Japanese conglomerate and the private equity giant teamed up to make a $26 billion offer, The Wall Street Journal reported on Thursday. Here’s everything you need to know about Aaron Sobel, the 37-year-old partner spearheading Apollo’s bid.

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Dan DeFrancesco, deputy editor and anchor, in New York. Jordan Parker Erb, editor, in New York. George Glover, reporter, in London. Lisa Ryan, executive editor, in New York.

Get in touch. Email us at insidertoday@insider.com

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