Last week Patently Apple posted a report titled "Counterpoint Research makes a wild claim that Apple may decide to charge users a subscription fee for the use of Apple Intelligence." Jumping ahead a week and we may have been given a glimpse of the logic behind such a possible move.

Yesterday, Google launched introduced new updates to their product line while showcasing new AI capabilities. One of the features was "Gemini Live." They had noting during their keynote that Gemini Live was available to all "Gemini Advanced Subscribers." Translation: It's a paid AI service.

What's the logic behind charging Pixel fans for Gemini Live? A report by The Elec this morning states that Google (and perhaps others like Apple) is charging for advanced Google AI services as a strategic decision to avoid Europe's DMA.  

Google described "Gemini Live as " a really useful personal AI assistant, suggesting a way to use generative AI in a natural, intuitive, conversational way." Below is a video clip of yesterday's segment on Geminin Live.

Gemini Live is a service for a monthly subscription of US$20 like the existing Gemini Advanced. Once again, it's believed that Google is doing this to avoid antitrust issues with the EU's Digital Markets Act (DMA). This is likely where the rumor came about with Apple contemplating a similar move – to avoid DMA issues. Whether Apple will first offer most of their AI features for free and then offer an advanced version via subscription at some point in time is unknown at this time. But at least for now, we could understand the logic of last week's rumor.  

A paid service is one way to avoid monopoly centric issues since it allows autonomy to be used only by those who want to use it. It's unlikely to develop into a problem of abuse of market dominance by monopolistic operators.

An industry insider told The Elec that "Google seems to be in a difficult position recently, as it is being sued in the U.S., Europe and other countries over antitrust issues," and "It can be interpreted that the paid version of Gemini Live, as well as previously released Gemini Advanced, as an attempt to avoid antitrust issues."

It certainly sounds like a plausible way for Apple to avoid similar scrutiny by US and European antitrust bodies with Apple Intelligence, especially if there's a higher tier of AI for a price at some point in time.  For more on this, read the full report by The Elec