Google Challenges DOJ's AI Bundling Ban Proposal

Google Challenges DOJ's AI Bundling Ban Proposal

Alphabet’s Google is actively contesting a U.S. Justice Department proposal that would prohibit the company from bundling its new AI-powered Gemini app with other popular services like Google Maps and YouTube. This legal dispute is unfolding in the context of a broader antitrust case where a federal judge has already found Google guilty of monopolizing search and search advertising markets, and is now designing remedies to curb the company’s anti-competitive practices.

Background: Antitrust Ruling and Bundling Restrictions

In a landmark decision last month, U.S. District Judge Amit Mehta ruled that Google had engaged in illegal monopolistic conduct by using exclusivity payments to secure its dominance in search, Chrome browser, and the Google Play Store. As part of the remedy, the judge banned Google from paying device manufacturers and other companies to exclusively preinstall these products, though he stopped short of an outright ban on all payments or bundling practices.

The Justice Department has since pushed to extend these restrictions further, proposing that the same rules that apply to Search, Chrome, and Play Store should also apply to Google’s generative AI offerings, particularly the new Gemini app. The government argues that Google should not be allowed to leverage its control over Maps or YouTube to force device makers or users to adopt Gemini AI, as this would entrench Google’s power in the emerging AI market.

Google’s Legal Argument: No Monopoly in AI or Bundled Apps

Google’s defense, articulated by lawyer John Schmidtlein during a hearing on October 8, 2025, emphasizes that there is no evidence Google has monopolized the AI market. He stressed that “there’s no notion that Google has to date gained monopoly or market power” in AI, and that neither Maps nor YouTube are monopolistic products. Therefore, the company argues, it should retain the right to bundle Gemini AI with these apps, allowing seamless integration that benefits consumers.

Google contends that forcing device manufacturers to include Gemini alongside Maps and YouTube is a natural extension of their ecosystem strategy, enhancing user experience with integrated AI capabilities. The company warns that barring such bundling would stifle innovation and impede consumer access to advanced AI features.

Judge’s Concerns and Justice Department’s Position

Judge Mehta, who presided over the antitrust case and issued the initial remedy, expressed reservations about allowing Google to compel device makers to bundle Gemini with Maps or YouTube. He noted that such leverage could allow Google to unfairly position its AI service, potentially harming competition in the AI market.

The Justice Department, represented by lawyer Cameron Gower, urged the court to apply the same restrictions to Gemini AI that were imposed on Chrome and Search, emphasizing the importance of maintaining a level playing field as AI technologies become increasingly central to digital services.

Industry Implications: AI, Bundling, and Market Power

This legal battle highlights the complex intersection of antitrust law and the rapidly evolving AI landscape. Google’s Gemini AI is a flagship generative AI product intended to compete with offerings from Microsoft, OpenAI, and others. The ability to bundle AI features with widely used apps like Maps and YouTube could provide Google with a significant user base advantage.

However, critics argue that such bundling practices can reinforce Google’s dominant market position, making it difficult for rivals to gain traction. The case echoes past antitrust scrutiny over Google’s bundling of Search and Chrome, which has shaped digital market competition for years.

What’s Next?

Judge Mehta has not yet announced a final ruling on this matter. The outcome will likely set an important precedent for how regulators approach AI product bundling and monopoly power in the tech sector. The case is being closely watched by industry stakeholders, regulators, and legal experts as it may influence future policy decisions regarding AI integration and competition law.

Visuals Related to the Topic

• Official Google logo representing the company involved in the case.
• Screenshots or promotional images of Google Maps, YouTube, and Gemini AI interface to illustrate the apps in question.
• Photos of Judge Amit Mehta, who presides over the case.
• Infographics showing the bundling practice and its potential impact on market competition.

These visuals provide a clear context to the ongoing legal and technological issues surrounding Google’s bundling practices with AI.