The historic antitrust trial between Google and the U.S. Department of Justice is creating significant shifts in the online search landscape. More than a decade ago, Microsoft faced a similar legal battle with the DOJ, during which a prominent attorney in Silicon Valley remarked, "The trial is the solution." This statement suggested that holding a tech giant accountable in court could pave the way for innovation from smaller companies. Now, this scenario is unfolding with Google.
Just as Microsoft was accused of missing the mobile revolution due to its legal troubles, recent documents and testimonies in the ongoing trial indicate that Google may be lagging in the artificial intelligence race, distracted by its own antitrust case.
In the second phase of the trial, the DOJ is focusing on how AI is reshaping online search and highlighting new opportunities for startups to challenge Google's dominance. A pivotal moment occurred when Eddy Cue, a senior leader at Apple, testified about why Apple chose OpenAI's ChatGPT over Google's Gemini as its AI partner for the iPhone. Cue revealed that Apple is considering enhancing Safari to integrate more deeply with AI-supported search tools.
His message was clear: while Google is busy solidifying its dominant position, AI competitors are steadily establishing themselves and offering significant alternatives for answering internet queries.
Professor Tim Wu from Columbia University, a former advisor on competition to President Joe Biden, noted that increased scrutiny forces monopolies to act more cautiously. He emphasized that the essence of antitrust lawsuits is to instigate change. Federal Judge Amit Mehta, overseeing the case, is contemplating remedies, including the potential separation of Chrome from Google. A decision is expected after final arguments later this month.
At a conference in Scotland, Gail Slater, head of the DOJ's antitrust division, emphasized that the search market has been "frozen" for two decades. "The question is how to break that ice? The answer lies in data and scale," she stated.
In contrast, Google strongly opposes the proposed measures. Lee-Anne Mulholland, Google's Vice President of Legal, argued that the DOJ's suggestions are "extreme" and would stifle innovation. She contended that many startups simply want to "borrow" Google's technology rather than develop their own.
Since 2003, Apple has maintained a lucrative partnership with Google, generating up to $20 billion annually from making Google the default search engine. Cue, who played a central role in these negotiations, defended this agreement in court in 2023. Yet, in a surprising turn regarding AI, Apple has now turned away from Google, opting to partner with OpenAI instead of integrating Gemini into its devices.
During his recent testimony, Cue did not mention Gemini at all, a silence that spoke volumes. The contrast between Cue's cautious demeanor in 2023 and his enthusiastic comments about AI in 2025 has raised eyebrows. Previously reserved, he now expressed excitement about AI, calling it the fourth technological revolution he has witnessed in his 35-year career. Cue specifically mentioned emerging AI companies like Perplexity and Claude (Anthropic) as potential disruptors that could shake up traditional information approaches.
He noted that while AI chatbots may not completely replace search engines, they offer a new approach: instead of returning a list of links, AI provides direct answers with aggregated information from vast data sets. This shift threatens Google's traditional search model.
In response, Google claims it continues to see steady growth in queries from Apple users, particularly through voice and image search, reflecting changing search trends. However, many witnesses at the trial asserted that the lawsuit has opened business opportunities for Google's competitors. Among them is Perplexity, an AI startup that is gaining traction through a deal with Motorola (Lenovo). Dmitry Shevelenko, a representative of the company, asserted that this success is due to the legal pressure placed on Google, compelling phone manufacturers, browsers, and carriers to be more open to new partners.
Ironically, Google was a pioneer in large language model technology—the foundation for today's AI chatbots. However, it has fallen behind in deployment, partly due to the inertia of its dominance. ChatGPT launched in late 2022 and quickly captured the global user base's attention.
Google argues that it invests billions of dollars annually in innovation and that its delay in integrating AI was to ensure responsible implementation. Yet, Professor Tim Wu points out that the fear of "self-disrupting its business model" is a common trait among monopolistic giants. He cited the example of Bell Labs, which invented numerous groundbreaking technologies but was stifled by AT&T's concerns over its impact on landline revenues.
For Google, this mentality is reflected in internal notes. At a meeting in October 2024, senior leaders pressured the Gemini team to quickly monetize AI, even as they acknowledged that doing so might affect traditional search and advertising operations. Vidhya Srinavasan, Google’s Vice President of Advertising and Commerce, warned, "We haven't lost search or ad traffic yet, but that’s inevitable. We need to prepare for Gemini's success, and advertising must be integrated as soon as possible."
According to Apple's statistics, Google is indeed losing users as AI transforms traditional search habits. Eddy Cue revealed that in April 2025, Google searches on Safari decreased for the first time in 22 years. Cue expressed concern about the potential loss of revenue from Google Search, as the agreement to keep Google as the default search engine is worth about $20 billion per year. He attributed this decline to the rise of artificial intelligence.
More people are bypassing Google to seek answers directly from AI chatbots like ChatGPT, Perplexity, Gemini, or Microsoft Copilot. These tools not only offer convenience but also provide a sense of accuracy that traditional search methods struggle to match. The impact extends beyond Google and Apple; as users search less, website traffic from search results is also declining, significantly affecting businesses reliant on clicks from Google Search.
Pandu Nayak, Vice President of Google Search, stated that there is "no guarantee" this trend will reverse. Once considered the gateway to the internet, Google now faces the risk of being replaced by a faster, smarter shortcut that is harder to control.
