The European Commission (EC) has opened investigation against American tech giant, Google, to assess whether the company has breached EU competition rules by using the content of web publishers, as well as content uploaded on the online video-sharing platform YouTube, for artificial intelligence (‘AI’) purposes.
The EC says the investigation will examine whether Google is distorting competition by imposing unfair terms and conditions on publishers and content creators, or by granting itself privileged access to such content, thereby placing developers of rival AI models at a disadvantage.
“AI is bringing remarkable innovation and many benefits for people and businesses across Europe, but this progress cannot come at the expense of the principles at the heart of our societies,” said the bloc’s commissioner for competition Teresa Ribera.
Of particular interest is Google’s Overviews and AI Mode which the company might have used without appropriate compensation and without the possibility for publishers to refuse without losing access to Google Search.
“This is why we are investigating whether Google may have imposed unfair terms and conditions on publishers and content creators, while placing rival AI models developers at a disadvantage, in breach of EU competition rulesm, ” she added
Google has severally found itself on the wrong side with the EU over antitrust rules.In September, the Google was slapped with a fine of nearly 3 billion euros ($3.4 billion) for breaching antitrust rules, with the Commision citing that it(Google) by distorts competition in the advertising technology industry, clams it denied.
At the time, Google’s global head of regulatory affairs, Lee-Anne Mulholland said the EU decision was “wrong” and the firm would appeal. “There’s nothing anticompetitive in providing services for ad buyers and sellers, and there are more alternatives to our services than ever before,”
In its response, the company says the latest accusation stifles innovation.
“This complaint risks stifling innovation in a market that is more competitive than ever,” Google said in statement. “Europeans deserve to benefit from the latest technologies and we will continue to work closely with the news and creative industries as they transition to the AI era.”
Last week, Elon Musk’s social media app X was slapped with a 120-million-euro ($140 million) fine for breaching transparency obligations around its advertising repository and “the deceptive design of its ‘blue checkmark.’”
The EC uses the Digital Markets Act (DMA) to address the market power and control of tech giants, with the aim to ensure that these dominant platforms do not abuse their position and that digital markets remain fairly competitive and consumer-friendly.