Google Under Investigation for Breaching EU Competition Rules

The European Union has initiated a significant formal investigation into whether Google has violated EU competition regulations by exploiting the online content of web publishers and its YouTube platform to enhance its generative artificial intelligence models, including Gemini and the new AI Overviews feature.

The Core of the Investigation

This action puts the tech giant in the spotlight once more regarding its dominance in the digital market. Brussels regulators are worried that Google is enforcing unfair trading conditions on content creators and publishers while simultaneously granting itself privileged, uncompensated access to their materials, which undermines competition for other AI developers.

Examination of Data Use

The EU’s competition authority has stated that the inquiry will closely examine how Google collects vast amounts of third-party data. There is a belief that Google may be skewing the developing AI market by using content to produce its popular AI-driven services on search results pages without appropriately compensating the original creators.

Publisher Rights

A primary concern is whether publishers can deny the use of their content without facing the significant financial penalty of losing access to Google Search traffic. EU competition commissioner Teresa Ribera highlighted that while AI offers substantial benefits for Europe, technological progress “cannot come at the expense of the principles that underpin our societies.” She underlined the necessity of maintaining fair competition within the growing AI sector.

YouTube Content Policies

The investigation specifically targets the inconsistent standards regarding content uploaded to YouTube. Creators on Google’s video platform are presently required to authorise the company to utilise their data for training generative AI models, frequently without direct remuneration for this usage.

Access for Rivals

Importantly, the Commission argues that competing AI model developers are restricted by YouTube’s policies from accessing this extensive repository of video content for their training endeavours. Such practices provide Google with a notable, potentially anti-competitive edge over its rivals.

Google’s Response and Potential Penalty

If Google is found to have violated competition regulations, the company could face fines approximating 10% of its global annual revenue.

In a prompt response, a spokesperson for Google deemed the Commission’s decision as “incorrect,” claiming that the company’s AI services function in a highly competitive environment and expressing its intention to contest the formal investigation. Google maintains its commitment to working alongside news and creative sectors as they transition into the AI era.

This latest development follows a recent surge in regulatory scrutiny aimed at US tech companies, including an earlier multi-billion-pound penalty imposed on Google by the EU for antitrust infractions in the advertising technology domain.