European Google rivals partner on search engine infrastructure to counter Big Tech
A Google logo displays on a smartphone screen and the European flag on a computer screen.
Nikolas Kokovlis | Nurphoto | Getty Images
LISBON, Portugal — Ecosia and Qwant, two search engines competing with Google, announced a partnership Tuesday to build a European search index and reduce their dependence on U.S. Big Tech firms.
The two internet search firms agreed a joint venture, called the European Search Perspective or EUSP, with ownership split 50-50 between both firms. With a view to launch in France in early 2025, the venture aims to serve “improved” French and German language search results.
Ecosia is based in Berlin, while Qwant is headquartered in Paris. Qwant is a privacy-focused search engine that promises not to track users or resell their personal data. Ecosia’s search engine focuses on sustainability, pledging to plant one tree for every 50 searches on its platform.
Search infrastructure is what powers our access to the web, but it’s currently primarily controlled by Google, the dominant search engine with a more than 90% share of the global market. Even alternative search engines, such as Ecosia and Qwant, have to rely on existing tech from companies like Microsoft to deliver search results.
Christian Kroll, CEO of Ecosia, told CNBC the project had been made possible, in part, by new tech-focused competition rules in the European Union. The Digital Markets Act, which came into force earlier this year, requires Big Tech firms it calls “gatekeepers” to offer fair and reasonable access to their platforms.
In Google’s case, the company is required under the DMA to share data that would be useful for training a search model.
Why build a European search index?
Currently, alternative search engines like Ecosia, Qwant and DuckDuckGo don’t develop their own back-end infrastructure. The new venture will see them build their own search index from scratch, however, amassing results from a mix of different search engines. Ecosia last year switched to a mix of Google and Bing search results.
Ecosia and Qwant say their new search index will be “privacy-first,” using technologies from Qwant that were redesigned in 2023. Both companies will use the search index themselves but the tech will also be made available to other independent search engines and tech firms.
The launch comes as alternative search providers like Ecosia and Qwant are being forced to grapple with higher prices from Microsoft to access its Bing Search API (application programming interface), a piece of software that lets developers access the tech giant’s backend search infrastructure.
“We are European companies and we need to build technology that makes sure no third-party decision — for instance, Microsoft’s decision to increase costs to access their search API — could jeopardize our business,” Olivier Abecassis, CEO of Qwant, told CNBC.
“It is nothing against the U.S. or U.S. companies. It is all about the sovereignty of our business and companies,” he added. Abecassis will also serve as CEO of the new venture, which hasn’t yet raised funding from external investors.
Europeans are “very dependent on the United States for our technology,” Kroll said in an interview last week ahead of the launch. The election of Donald Trump as U.S. president could escalate geopolitical tensions, he added — and this could be a problem for Europe’s reliance on U.S. technology.
He pointed to the disruption to European energy supplies after Russia cut off gas to Europe following its invasion of Ukraine, saying this should serve as a warning for what can happen when an entire continent becomes too dependent on a single country for a key resource.
AI ‘paradigm shift’ in search
Part of Ecosia and Qwant’s push to build a search engine from scratch will be to offer a “transparent and secure data pool” for new AI technologies, according to the companies.
Search providers may get “more restrictive” in future, given the shift toward generative AI, Ecosia’s Kroll told CNBC.
“They know they’re sitting on a very important resource for this paradigm shift,” he said. “Yes, you need large language models to have good chatbots. But you also need access to a good index.”
The rise of OpenAI’s ChatGPT has put pressure on incumbent search giant Google, as people increasingly turn to the viral chatbot to search for information.
Meanwhile, a slew of new search engines, such as Perplexity, have also entered the market, offering their own generative-AI-based alternatives to Google.
Google has fought back with its own generative AI search product, integrating its Gemini large language model into search results.
Technology
European tech CEOs urge ‘Europe-first’ mentality to counter U.S. dominance after Trump victory
Thomas Plantenga, CEO of used fashion resale app Vinted, on center stage during Web Summit 2024 in Lisbon, Portugal.
Harry Murphy | Sportsfile for Web Summit Getty Images
LISBON, Portugal — Tech CEOs in Europe are urging region al countries to take bolder action to tackle Big Tech’s dominance and counter reliance on the U.S. for critical technologies like artificial intelligence after Donald Trump’s electoral win.
The Republican politician’s victory was a key topic among prominent tech bosses at the Web Summit conference in Lisbon, Portugal. Many attendants said they’re unsure of what to expect from the U.S. president-elect, citing this unpredictability as a core challenge at present.
Andy Yen, CEO of Swiss VPN developer Proton, says Europe should echo American protectionism and adopt a more “Europe-first” approach to technology — in part to reverse the trend of the last two decades, during which much of the Western world’s most important technologies, from web browsing to smartphones, have become dominated by a handful of large U.S. tech firms.
VPNs, or virtual private networks, are services that encrypt data and mask a user’s IP address to hide browsing activity and bypass censorship.
“It’s time for Europe to step up,” Yen told CNBC on the sidelines of Web Summit. “It’s time to be bold. It’s time to be more aggressive. And the time is now, because we now have a leader in the U.S. that is ‘America-first,’ so I think our European leaders should be ‘Europe-first.'”
One key push for the past decade from the European Union has been to take legal action and introduce tough new regulations to tackle the dominance of large technology players, such as Google, Apple, Amazon, Microsoft and Meta.
As Trump prepares to come into power for a second mandate, concerns have now mounted that Europe might reel in its tough approach to tech giants out of fear of retaliation from the new administration.
US Big Tech playing ‘extremely unfairly’
Proton’s Yen, for one, urged the EU not to water down its attempts to rein in America’s tech giants.
“Europe has been thinking in a very globalist mindset. They’re thinking we need to be fair to everybody, we need to open our market to everybody, we need to play fair, because we believe in fairness,” he told CNBC.
“Well, guess what? The Americans and the Chinese didn’t get the memo. They have been playing extremely unfairly for the last 20 years. And now they have a president that is extremely ‘America-first.'”
Mitchell Baker, former CEO of American open internet non-profit Mozilla Foundation, said the EU’s DMA has led to meaningful changes for the Firefox browser, with activity increasing since Google implemented a “choice screen” on Android phones that enables users to select their search engine.
“The change in Firefox new users and market share on Android is noticeable,” Baker said. “That’s nice for us — but it’s also an indicator of how much power and centralized distribution that these companies have.”
She added, “This change in usage because of one choice screen isn’t the full picture. But it is an indicator of the kind of things that consumers can’t choose and that businesses can’t build successfully because of the way the tech industry is structured right now.”
Thomas Plantenga, CEO of Lithuania-headquartered used clothing resale app Vinted, urged Europe to take the “right choices” to ensure the continent can “fend for ourselves” and does not get “left behind.”
“If you look very realistically at what countries do, they try to take care of themselves and they try to form coalitions to be stronger themselves, and as a coalition be stronger,” Plantenga told CNBC in an interview. “We have a lot of very talented, well-educated people.”
“We need [to] ensure that we can take care of our own safety, that we can take care of our own energy, that we ensure to keep on investing in our education and innovation so that we can keep up with the rest [of the world],” he stressed. “If we don’t, then we’ll be left behind. In every collaboration, it’s always a trade. And if we don’t have much to trade, we become weaker.”
‘AI sovereignty’ now a key battleground
Another theme that attracted much chatter on the ground at Web Summit was the idea of “AI sovereignty” — which refers to countries and regions localizing critical computing infrastructure behind AI services, so that these systems become more reflective of regional languages, cultures and values.
With Microsoft becoming a key player in AI, concerns have surfaced that the maker of the Windows operating system and Office productivity tools suite has secured a dominant position when it comes to foundational AI tools.
The tech giant is a key backer behind ChatGPT maker OpenAI, whose technology it also heavily uses in its own products.
For some startups, Microsoft’s decision to embrace AI has resulted in harmful, anti-competitive effects.
Last year, Microsoft hiked the fees it charges search engines to use its Bing Search APIs, which allow developers access to the tech giant’s backend search infrastructure — in part because of higher costs attached to its AI-powered search features.
“They’re gradually reducing our revenue — we’re still relying on them — and that reduces our capacity to do things,” Christian Kroll, CEO of sustainability-focused search engine Ecosia, told CNBC. “Microsoft is a very fierce competitor.”
CNBC has reached out to Microsoft for comment.
Ecosia recently partnered with fellow search provider Qwant to build a European search index and reduce dependence on U.S. Big Tech to deliver web browsing results.
Meanwhile, the European Union’s AI Act, a landmark artificial intelligence law with global implications, introduces new transparency requirements and restrictions on companies developing and using AI.
The laws are likely to have a big impact on predominantly U.S. tech firms, since they’re the ones doing much of the development of — and investment in — AI.
With Trump set to come into power, it’s unclear what that could mean for the global AI regulatory landscape.
Shelley McKinley, chief legal officer of code repository platform GitHub, said she can’t predict what Trump will do in his second term — but that businesses are planning for a range of different scenarios in the meantime.
“We will learn in the next few months what President-elect Trump will say, and in January we will start seeing some of what President Trump does in this area,” McKinley said during a CNBC-moderated panel earlier this week.
“I do think it is important that we all, as society, as businesses, as people, continue to think about the different scenarios,” she added. “I think, as with any political change, as with any world change, we’re still all thinking about what are all of the scenarios we might operate.”
Technology
European SpaceX rival raises $160 million for reusable capsule to carry astronauts, cargo to space
Alex Karp, CEO of Palantir Technologies speaks during the Digital X event on September 07, 2021 in Cologne, Germany.
Andreas Rentz | Getty Images
Palantir shares continued their torrid run on Friday, soaring as much as 9% to a record, after the developer of software for the military announced plans to transfer its listing to the Nasdaq from the New York Stock Exchange.
The stock jumped past $64.50 in afternoon trading, lifting the company’s market cap to $147 billion. The shares are now up more than 50% since Palantir’s better-than-expected earnings report last week and have almost quadrupled in value this year.
Palantir said late Thursday that it expects to begin trading on the Nasdaq on Nov. 26, under its existing ticker symbol “PLTR.” While changing listing sites does nothing to alter a company’s fundamentals, board member Alexander Moore, a partner at venture firm 8VC, suggested in a post on X that the move could be a win for retail investors because “it will force” billions of dollars in purchases by exchange-traded funds.
“Everything we do is to reward and support our retail diamondhands following,” Moore wrote, referring to a term popularized in the crypto community for long-term believers.
Moore appears to have subsequently deleted his X account. His firm, 8VC, didn’t immediately respond to a request for comment.
Last Monday after market close, Palantir reported third-quarter earnings and revenue that topped estimates and issued a fourth-quarter forecast that was also ahead of Wall Street’s expectations. CEO Alex Karp wrote in the earnings release that the company “absolutely eviscerated this quarter,” driven by demand for artificial intelligence technologies.
U.S. government revenue increased 40% from a year earlier to $320 million, while U.S. commercial revenue rose 54% to $179 million. On the earnings call, the company highlighted a five-year contract to expand its Maven technology across the U.S. military. Palantir established Maven in 2017 to provide AI tools to the Department of Defense.
The post-earnings rally coincides with the period following last week’s presidential election. Palantir is seen as a potential beneficiary given the company’s ties to the Trump camp. Co-founder and Chairman Peter Thiel was a major booster of Donald Trump’s first victorious campaign, though he had a public falling out with Trump in the ensuing years.
When asked in June about his position on the 2024 election, Thiel said, “If you hold a gun to my head I’ll vote for Trump.”
Thiel’s Palantir holdings have increased in value by about $3.2 billion since the earnings report and $2 billion since the election.
In September, S&P Global announced Palantir would join the S&P 500 stock index.
Analysts at Argus Research say the rally has pushed the stock too high given the current financials and growth projections. The analysts still have a long-term buy rating on the stock and said in a report last week that the company had a “stellar” quarter, but they downgraded their 12-month recommendation to a hold.
The stock “may be getting ahead of what the company fundamentals can support,” the analysts wrote.
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