DOJ Subpoenas Perplexity Executive for Google Antitrust Case

Google's Search Monopoly Case and Perplexity's Role

In August, a U.S. court determined that Google maintains a monopoly in the search market. While Google is currently appealing this ruling, the Justice Department is actively assessing potential penalties.

DOJ Seeks Testimony from Perplexity Executive

As part of the ongoing process, the DOJ intends to call upon Dmitry Shevelenko, the chief business officer of Perplexity, to testify. This request is outlined in a recent court filing.

Perplexity, an AI-powered search provider, was recently valued at $9 billion, according to Reuters.

The Rise of AI Search and Google's Response

Generative AI tools, including Perplexity and OpenAI’s ChatGPT Search, are emerging as potential alternatives to traditional internet searching.

These tools offer direct responses to complex questions, though accuracy can sometimes be an issue.

Google has responded to this challenge by developing its own AI search features, such as AI Overviews, which present AI-generated answers directly within search results.

Focus of the DOJ's Inquiry

The DOJ aims to question Shevelenko regarding “generative AI’s relationship with Search Access Points, distribution, barriers to entry and expansion, and data sharing.”

The term “search access points” refers to platforms like Google Chrome – the avenues through which users access the internet for searching.

Implications for the Antitrust Case

The DOJ’s interest in Perplexity’s insights could strengthen its argument that Google’s dominance stifles competition within the search industry.

This could lead to more substantial penalties being imposed on Google.

Perplexity Caught Between Two Sides

Both the DOJ and Google are seeking information from Perplexity to bolster their respective cases.

Google issued a subpoena to Perplexity in October, requesting company documents to demonstrate the existence of viable competition.

Similar subpoenas were also served to Microsoft and OpenAI.

Document Production Delays

As of December 11, Perplexity had not provided any documents to Google, prompting the tech giant to express frustration in a court filing.

Google argues that there is “no conceivable justification for further delay” after two months.

Perplexity's Response to the Subpoena

Perplexity states that it has agreed to fulfill 12 of Google’s 14 document requests.

However, it is still assessing the effort required to collect the remaining documents, which it deems potentially extensive.

Furthermore, Perplexity has requested a discussion with Google regarding the scope of the document requests, specifically concerning licensing agreements.

While Perplexity has agreed to provide licensing agreements related to AI training, Google is seeking all of Perplexity’s licensing agreements.