Tech News Weekly 363: DOJ Wants Google To Sell Chrome

Release Date: November 21, 2024

Hosts: Micah Sargent and Jennifer Pattison Tuohy
Guest: Lian Nyland, Antitrust Reporter at Bloomberg

1. Amazon's Echo Show 21 and Echo Show 15

The episode kicks off with Jennifer Pattison Tuohy discussing Amazon’s latest foray into the smart display market with the introduction of the Echo Show 21 and Echo Show 15. Jennifer elaborates on the features and significance of these new devices:

"This is the Echo Show 21 and it is not their 21st device... this is their 21-inch smart display which is huge." [02:46]

Jennifer highlights that the Echo Show 21 is an upgrade from the previous Echo Show 15, integrating Fire TV capabilities and a built-in smart home hub. She notes the device's wall-mountable feature and enhanced audio quality, although she expresses some disappointment over its 1080p resolution:

"It's $400 which is quite spendy for a smart display but not so much for a TV... It's nice that they're bringing it to this one which is really a good device to stick in your kitchen at least the 15." [05:00]

Micah adds perspective on the device’s positioning in the market:

"It makes a lot of sense except for when you're dealing with smart displays because they're not very powerful." [08:27]

Jennifer concurs, emphasizing the potential lag issues with larger displays and the overall user experience:

"I struggle with for touch control, like, which is what I would want to use a touchscreen in my house for is to press to control things. And it's kind of laggy and slow..." [08:27]

2. AI and the Robotics Revolution

Transitioning from smart displays, Micah introduces a Financial Times article on AI's role in advancing robotics. The conversation delves into how AI is enabling robots to perform more complex and adaptive tasks within homes:

"Robots can be better trained to improv and in doing so, can cook shrimp and take the lids off of pots and even fix their fellow robots." [22:45]

Jennifer reflects on the article’s insights and shares her perspective on the future of home robotics:

"What feels more realistic and also a little less creepy in our homes are robots that have specific tasks." [26:28]

Micah voices his concerns about safety and reliability:

"I'm like, okay, because in order to do those things... it's like these things are pretty powerful and if it gets it wrong... that's a little intimidating." [27:26]

Jennifer agrees, stressing the importance of guardrails in robotic development:

"We need to create something that's not going to be smarter than us and that realizes that we're the superior being here." [31:00]

3. Microsoft Ignite 2024 Highlights

After a brief interlude, the focus shifts to Microsoft’s announcements at the Ignite conference, with insights from Zach Bowden of Windows Central. Key highlights include the introduction of a new mini PC and enhanced integration with Meta Quest headsets:

a. Windows 365 Link Mini PC

Zach explains the innovative aspects of the Windows 365 Link:

"It's a desktop computer... it's a thin client... all of its functionality is in the cloud and it connects to Microsoft's Windows 365 service." [35:33]

Benefits emphasized include cost-effectiveness for enterprises and streamlined setup processes. However, potential drawbacks such as dependency on a stable internet connection are also discussed:

"If you don't have an Internet connection, you can't do any work." [38:02]

b. Integration with Meta Quest Headsets

The discussion highlights improved virtual workspace functionalities:

"You can have multiple virtual monitors... you can access your Cloud PC directly within the headset." [43:30]

Zach discusses Microsoft’s strategic partnerships, noting a pivot away from proprietary VR hardware in favor of integrating services with existing platforms like Meta Quest.

4. DOJ’s Antitrust Case Against Google

The episode’s centerpiece is an in-depth analysis of the Department of Justice's (DOJ) antitrust actions against Google, featuring insights from Lian Nyland of Bloomberg.

a. DOJ’s Proposal to Sell Chrome

Lian outlines the DOJ’s latest proposal, which includes compelling Google to divest its Chrome browser:

"They think Google should be forced to sell Chrome, which is the most widely used browser in the world." [49:05]

This move aims to dismantle Google's monopoly in online search and advertising by reducing its control over web access points.

b. Implications for Competition and the Browser Market

The conversation explores how selling Chrome could foster competition:

"By breaking that link, Google might have to compete more with others." [50:35]

Lian discusses potential buyers and the challenges they might face given Chrome’s significant market value ($15-$20 billion):

"The two biggest companies... can't buy it because they already have browsers." [55:38]

She suggests that AI startups or investment firms might be interested, although the high cost presents substantial barriers.

c. Additional DOJ Remedies

Beyond selling Chrome, the DOJ is proposing data licensing and unbundling Android from other Google services to enhance competition:

"Unbundling Android... will give the opportunity for other players in search... to have a leg up." [56:51]

Lian emphasizes that these measures could significantly impact Google's dominance and aid the development of AI by providing competitors with essential data.

d. Historical Context and Future Implications

The discussion touches on the unprecedented nature of such remedies, noting that:

"The US hasn't required a company to spin off anything as a result of monopolization since 1984." [59:57]

Lian predicts a prolonged legal process with a final decision expected by early 2027, potentially setting a significant precedent for future antitrust cases against other tech giants.

Conclusion

The episode wraps up with a reflection on the potential repercussions of the DOJ's actions against Google, highlighting the broader implications for the tech industry's regulatory landscape. The hosts underscore the importance of these developments in shaping future competition and innovation within the digital ecosystem.

Key Quotes:

• Jennifer Pattison Tuohy:

  • "It's the Echo Show 21 and it is not their 21st device." [02:46]
  • "This is why, and it's interesting to see Amazon coming out with this big 21 inch." [10:53]
  • "I love the idea of a Rosie the Robot, but ultimately... specific tasks." [23:11]
  • "We need to create something that's not going to be smarter than us." [31:00]
  • "They sort of, it's kind of the Goldilocks approach." [11:29]

• Micah Sargent:

  • "I worry about it... especially because we've seen hallucination with the large language models." [27:26]
  • "How do you think these changes would impact the business?" [50:35]
  • "Oh, no." [30:57]

• Lian Nyland:

  • "They think Google should be forced to sell Chrome." [49:05]
  • "By breaking that link, Google might have to compete more with others." [50:35]
  • "Unbundling Android... will give the opportunity for other players." [56:51]
  • "The US hasn't required a company to spin off anything as a result of monopolization since 1984." [59:57]

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