Google pays ‘enormous’ fees for Gemini AI pre-install on Samsung phones

Source Cryptopolitan

Alphabet Inc., the parent company of Google, is reportedly paying Samsung Electronics a staggering monthly sum to pre-install its new generative AI app, Gemini, on Samsung smartphones and tablets.

The details emerged during court testimony on Monday in a significant antitrust trial underway in Washington, D.C.

Testifying in court, Peter Fitzgerald, Google’s vice president for platforms and device partnerships, said the agreement between Google and Samsung began in January 2025. The agreement will run for at least two years.

The deal pays Samsung a set amount per device when Gemini is pre-installed. Along with the monthly payments, Samsung also gets a share of the ad revenue generated by the Gemini app.

However, the court did not disclose the precise amount that Google is paying Samsung. During opening arguments, a U.S. Department of Justice lawyer, David Dahlquist, referred to it simply as an enormous sum of money.

The new details offer a glimpse into how critical Google views the future of its AI offerings. Google is aggressively making sure Gemini gets support across Android devices, and now it is starting with Samsung — the largest Android smartphone vendor in the world.

Judge reviews Google’s past illegal payments

Judge Amit Mehta is overseeing the trial.  The judge ruled last year that Google’s previous payments to Samsung — meant to make Google Search the default search engine on Samsung phones — broke antitrust law.

Now, the court is conducting hearings to determine what, if any, changes or penalties should be imposed on Google. The idea is not to let Google use its power to stifle competition again.

Google’s new deal with Samsung, the DOJ’s Dahlquist warned during the hearing, appears familiar to previous practices it had engaged in. He indicated Google may be using cash to prevent competing apps and services from getting space on leading devices.

Google has also drawn scrutiny for the payments it makes to Samsung. In addition to that payment, between 2020 and 2023, Google reportedly paid Samsung around $8 billion to secure the default position for Google Search, the Google Play Store, and Google Assistant on Samsung phones and tablets.

Gemini comes in focus as government steps up legal action against Google

The Gemini deal is Google’s latest step amid heavy legal pressure. In 2023, a separate federal jury ruled that Google had abused its dominance over the Android app ecosystem. They agreed that Google’s policies regarding the Play Store made it more difficult for competitors to provide alternative app stores or billing methods.

A federal judge in California ordered Google to alter its business practices after the verdict. They were ordered to cease preventing developers from building competing marketplaces or using their payment systems.

While Google is currently appealing the ruling, pressure on the company continues to build throughout the appeals process.

U.S. and European regulators are keeping close tabs on Google. They worry the tech giant will use its power in emerging markets like AI just as it did in search and the app store.

The Gemini case may become a new litmus test for how the U.S. government deals with tech monopolies. It could also influence the future of AI competition on mobile devices, where applications like Gemini, OpenAI’s ChatGPT, and others compete for users’ attention.

Samsung has a big part to play in the deal as well. Samsung is the largest maker of Android phones, giving it the power to make or break new apps. By taking Google’s money, Samsung may face criticism for helping Google solidify its dominance, even as regulators press for greater competition.

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