Motorola Embraces Perplexity AI as Antitrust Scrutiny Reshapes Mobile Search Alliances

Motorola partners with Perplexity as default Razr AI assistant amid Google’s DOJ antitrust trial, signaling shift toward non-exclusive AI ecosystems under regulatory pressure.

Motorola’s June 15 integration of Perplexity AI into Razr smartphones coincides with heightened antitrust scrutiny of Google’s search dominance, as the DOJ concluded trial arguments on June 20 highlighting $26B/year OEM payments. With Perplexity reaching 15M monthly users (300% YoY growth) and EU mandating third-party app pre-installs, this partnership exemplifies how regulatory actions are accelerating diversified AI ecosystems in mobile hardware.

Strategic Shift in Default AI Deals

Motorola’s Razr series now features Perplexity as its default AI assistant instead of Google, according to the company’s June 15 press release. This move comes as the Department of Justice presented evidence that Google paid $26B annually to maintain search default status during trial arguments concluded June 20.

Perplexity CEO Aravind Srinivas told TechCrunch on June 18: “Our growth proves users want alternatives to ad-driven models. Partnering with Motorola without payment exchanges aligns with post-DMA market realities.”

Regulatory Catalysts Reshape Mobile AI

The European Commission’s June 18 DMA ruling fined Google $2.6B and mandated Android OEMs to pre-install third-party search apps by Q4 2024. Simultaneously, Microsoft expanded Copilot AI to 50M devices through non-exclusive deals with Dell and ASUS (June 17 update), while Amazon upgraded Alexa’s proactive AI capabilities on June 19.

Historical Parallels in Tech Antitrust

The current regulatory push mirrors the 2001 Microsoft antitrust case where bundling Internet Explorer with Windows was deemed anti-competitive. However, today’s multi-vendor AI approach differs fundamentally – instead of breaking up monopolies, regulators are forcing open ecosystems through legislation like the DMA.

This shift recalls the 2010s mobile payment wars, when Alipay and WeChat Pay’s non-exclusive partnerships with device makers helped them capture 92% of China’s digital payments market by 2019. Similarly, Perplexity’s ad-free model and revenue-sharing-free OEM deals could position it as a preferred alternative in regulated markets.

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