In today’s Digest, we discuss Google’s Search overhaul offer to dodge an EU DMA fine and Google backing out of its deal with Aussie publishers. Apple also mulls an acquisition of Perplexity AI, while being sued by shareholders over AI disclosures. Additionally, we discuss Snapchat acquiring student app Saturn.

Google Offers Search Overhaul to Dodge EU DMA Fine; Backs Out of Deal with Aussie Publishers

According to documents seen by Reuters, Google has offered to implement additional changes to its search results in an effort to appease European Union regulators and avoid a significant fine under the Digital Markets Act (DMA). The latest proposal, submitted three months after the European Commission charged Google with breaching the DMA by prioritising its own vertical services including Google Shopping, Hotels, and Flights.

Google's new proposal, a vertical search service (VSS) selected on objective and non-discriminatory criteria, would get its own box at the top of the search page with the same format, information and features as Google's, the document said. The box would contain three direct links picked by the VSS, to hotels, transport, and dining.

Google has also reportedly withdrawn from its multi-year payment deal with the Public Interest Publishers Alliance (PIPA), a group of 24 small Australian news publishers, ahead of the agreement’s intended 2027 end date. Originally struck in 2022 to avoid intervention under Australia’s News Media Bargaining Code (NMBC), the deal committed Google to paying millions to the publications over five years. However, sources suggest the arrangement was structured as a rolling annual agreement rather than a fixed-term contract. According to Mumbella, publishers are said to still be negotiating third-year payments, complicating any potential public grievance.

Apple Mulls Perplexity AI Acquisition; Sued by Shareholders over AI Disclosures

Apple has reportedly held internal discussions about a potential acquisition of Perplexity AI, as the tech giant looks to deepen its AI capabilities, say sources cited by Bloomberg.

According to sources familiar with the matter, Adrian Perica, Apple’s head of mergers and acquisitions, alongside senior executives including services chief Eddy Cue and AI leadership, have weighed up the idea. Discussions, however, remain at a preliminary stage, with no formal approach made to Perplexity's management.

Meanwhile, Apple is facing a proposed class action lawsuit from shareholders who allege the company misled investors about its progress in integrating advanced AI capabilities particularly into its Siri assistant. Filed in San Francisco federal court, the complaint claims Apple downplayed the time and complexity involved in embedding AI features into its ecosystem, ultimately impacting iPhone sales and contributing to a decline in the company’s stock price. 

The suit seeks unspecified damages on behalf of shareholders who incurred losses during the 12-month period ending 9 June.

Snapchat Acquires Student App Saturn 

Snapchat has acquired Saturn, a calendar-based social app designed to help students manage their class schedules and coordinate meet-ups. Snap confirmed to Engadget that roughly 80% of US high schoolers attend schools supported by Saturn schedules. Saturn’s availability across 17,000 high schools (and expanding into college campuses), aligns with Snapchat’s core teen demographic.

Given the opportunity to deepen engagement with its core teen user base, the acquisition presents a strategic fit for Snap. The company is expected to explore how Saturn’s scheduling and social planning tools can enhance Snapchat’s utility as a daily coordination hub for students. For now, Saturn will continue to operate independently, while Snap evaluates integration pathways and defines the long-term roadmap for the merger.