[News] Samsung and Google Reportedly under EU Scrutiny for AI Integration in New Smartphones | TrendForce Insights

Earlier on July 10^th, in the Galaxy Unpack 2024 event in Paris, Samsung introduced its AI smartphone Galaxy Z Fold6 and Galaxy Z Flip6, along with the “Google Gemini” app installed in the models. However, according to the reports by Reuters and Business Korea, these two tech giants may be facing the investigation of the European Union (EU) antitrust regulators, on whether the collaboration might impede market access for other AI developers or limit competition.

It has been a while since the two tech heavyweight started to team up on AI. Samsung’s first AI phone, Galaxy S24, released earlier this year, has featured its self-developed AI, Gauss, as well as Google’s Gemini Nano.

The EU has ramped up its market monitoring efforts following the implementation of the Digital Markets Act (DMA) in March, focusing on major global tech companies. The DMA identifies seven companies—Google, Amazon, Apple, Meta, Microsoft, Booking and ByteDance —as ‘gatekeepers’ and imposes specific regulations on them to ensure fair competition in the digital market, Business Korea noted.

Now the spotlight has been shifted to the AI sector. According to Reuters, EU antitrust regulators are inquiring whether Google’s multi-year generative AI deal with Samsung hampers rival chatbots on Samsung smartphones. The report noted that last month, the European Commission announced it would send requests for information to understand the impact of the deal, which involves Samsung embedding Google’s Gemini Nano in its Galaxy S24 series smartphones.

According to the Reuters report, regulators are investigating if the pre-installation of Gemini Nano limits the functionality of other chatbots and applications on Samsung smartphones. The EU also asked companies whether they had attempted to enter into pre-installation agreements with Samsung for their chatbots and, if so, requested explanations for any failures. Respondents are required to complete the urvey by this week.

If anti-competitive practices are confirmed, an antitrust investigation against Google and Samsung could be initiated, Reuters stated.

According to Business Korea, after the Galaxy Unpacked 2024 event, TM Roh, President of Samsung Electronics (Head of MX Business Division), addressed regulatory risks during a press conference, saying the company is having various discussions internally and externally regarding EU regulations.

Roh also emphasized Samsung’s commitment to data security, stating that sensitive information is processed on-device (without connecting to external servers), making it inaccessible even to the company,” and highlighted the company’s approach to giving consumers the choice of using AI functions on-device or via the cloud.

Read more

(Photo credit: Samsung)