Samsung Electronics’ launch of its first AI-integrated phone, featuring both its self-developed AI, Gauss, and Google’s Gemini Nano, has attracted the attention of European Union antitrust regulators. The EU is probing whether this collaboration could restrict market entry for other AI developers and stifle competition.
The investigation is part of the EU’s broader scrutiny of big tech companies under the Digital Markets Act (DMA), which took effect in March. The DMA classifies seven major companies, including Google, Amazon, Apple, Meta, and Microsoft, as ‘gatekeepers,’ subjecting them to special oversight to ensure fair competition in the digital market.
EU Executive Vice President Margrethe Vestager highlighted concerns about big tech potentially blocking smaller AI developers from market access. These concerns intensified following Samsung’s Galaxy Unpacked 2024 event, where the company showcased the “Google Gemini” app on its Galaxy Z Fold6 and Galaxy Z Flip6 models.
Post-event, Samsung Electronics’ President TM Roh addressed regulatory risks, emphasizing the company’s commitment to complying with EU regulations and prioritizing data security. Roh assured that sensitive information processed on-device would remain inaccessible to external servers, offering consumers the choice of using AI functions on-device or via the cloud.
The European Commission has since surveyed industry stakeholders about the potential restrictive impact of pre-installing Google’s Gemini Nano on Samsung smartphones. The survey inquired whether this pre-installation hindered other generative AI systems and if any companies faced challenges in securing pre-installation agreements with Samsung.
Should the EU confirm anti-competitive practices, an antitrust investigation against Google and Samsung could ensue, underscoring the EU’s dedication to maintaining fair competition in the burgeoning AI sector.
In parallel to these regulatory challenges, Samsung is bolstering its independent AI capabilities. The company recently acquired the UK startup Oxford Semantic Technologies, known for its advanced knowledge graph technology, as part of a strategic move to enhance user choices and mitigate regulatory risks.
