EU Antitrust Probe: Google's AI Search Tools Under Investigation

EU Investigates Google's AI Practices Over Competition Concerns

Despite criticism from Big Tech companies and American tech leaders regarding the European Union’s approach to regulating technology and artificial intelligence, the EU continues to prioritize competitive fairness. The European Commission has initiated a formal investigation into potential breaches of EU competition laws by Google.

The core of the inquiry centers on whether Google has been utilizing content sourced from websites without providing adequate compensation to the content owners. This practice is linked to the generation of AI-powered summaries displayed prominently above standard search results.

Investigation Scope: Content Usage and YouTube Videos

The investigation will also scrutinize Google’s utilization of videos originating from YouTube in the creation of these AI-generated responses. Specifically, the Commission aims to determine if Google is unfairly disadvantaging competition within the AI market.

This potential disadvantage stems from Google granting itself privileged access to website content and imposing what the EU considers “unfair terms and conditions” on publishers and content creators.

Commission Statement on Publisher Rights

According to a statement released by the bloc’s executive arm, the Commission will assess the extent to which Google’s AI Overviews and AI Mode rely on web publishers’ content.

A key focus will be whether publishers receive appropriate compensation for this usage and if they have the ability to opt-out without being penalized through reduced visibility in Google Search.

Google's Dominant Position and Limited Choices

The two products under investigation, AI Overview and AI Mode, are at the center of the concerns. The EC points out that Google’s dominance in web traffic gives it significant leverage.

Websites and content producers have limited options, as Google doesn’t offer payment for content usage and restricts YouTube uploads unless users consent to data utilization by Google.

Restrictions on Competitor AI Training

Furthermore, the EU is concerned that Google prevents competing AI companies from leveraging YouTube content to train their own AI models, potentially hindering their development.

Broader Context: Copyright Infringement Lawsuits

This investigation occurs alongside a wave of copyright infringement lawsuits filed against AI model developers and content providers by publishers and websites.

For example, AI search tool Perplexity is currently facing legal action from several prominent news organizations, including The New York Times, The Chicago Tribune, News Corp, and others.

EU's Approach vs. Content Licensing Negotiations

However, the EU’s investigation differs from these lawsuits. Many media companies are pursuing legal action as a means to negotiate content-licensing agreements with AI firms.

Their goal is to secure compensation for creators and receive payment for the use of their content. The EU, conversely, aims to create a more equitable environment for AI companies competing with Google.

Some reports suggest Google benefits from its extensive reach, enabling it to train its AI models on a significantly larger portion of the internet than its rivals.

Potential Simplification of AI Regulations

Despite ongoing criticism of its AI regulations, the EU is exploring potential simplifications and has proposed delaying the implementation of rules governing the use of AI in high-risk applications.

Google has not yet issued a response to requests for comment regarding this investigation.