European Commission Probes Fairness of Google’s AI Practices

The European Commission has launched an antitrust investigation into Google, examining whether the tech giant is imposing unfair conditions on content creators and web publishers to support its AI services.

The investigation centers on two primary issues. First, there’s concern about the potential use of videos uploaded to YouTube for training generative AI models without compensating the content creators or allowing them to opt out. The Commission states, “Content creators uploading videos on YouTube have an obligation to grant Google permission to use their data for different purposes, including for training generative AI models. Google does not remunerate YouTube content creators for their content, nor does it allow them to upload their content on YouTube without permitting Google to use such data.”

The second focus is on how Google utilizes web publishers’ content, such as webpages, to generate AI Overviews and AI Mode. The Commission will investigate the extent to which these AI features rely on web publishers’ content without fair compensation and whether publishers can refuse this use without losing access to Google Search.

For context, AI Mode functions as a traditional chatbot interface for Google Search, while AI Overviews provide concise summaries at the top of search results for specific queries. These overviews leverage information from web publishers and content creators to answer user queries directly on Google’s platform, potentially reducing the need for users to visit the original websites.

A report from Pew Research indicates that users who do not see an AI summary are nearly twice as likely to click on a traditional search result compared to those who do. Additionally, a study by Authoritas found that websites ranking highest for certain queries experienced a traffic drop of about 79% when an AI Overview was displayed on the results page.

AI Overviews are not present in all Google searches, with estimates suggesting they appear in less than 50% of cases. Google disputes the findings of the Authoritas study, asserting that it has not observed a significant decline in overall web traffic due to the introduction of AI Overviews.

This antitrust case is reigniting the ongoing debate between rightsholders, publishers, and major tech companies regarding AI usage. Currently, there exists an opt-out provision in EU copyright law for text and data mining, known as the TDM (Text and Data Mining) Exception, which allows the use of copyrighted material for AI training. However, rightsholders can choose to opt out of this exception.

The EU Artificial Intelligence Act states, “Directive (EU) 2019/790 introduced exceptions and limitations allowing reproductions and extractions of works or other subject matter, for the purpose of text and data mining, under certain conditions.” It further clarifies that rightsholders can reserve their rights to prevent text and data mining unless it is for scientific research. If rights are reserved appropriately, AI model providers must obtain authorization from rightsholders to conduct text and data mining on such works.

Essentially, the Commission is investigating scenarios where opting out may not be feasible. Another aspect of the inquiry is whether Google’s ownership of YouTube and Google Search gives it an unfair advantage over competing AI firms.

“AI is driving remarkable innovation and delivering benefits for individuals and businesses across Europe, but this progress must not compromise the principles that underpin our societies,” stated Teresa Ribera, executive vice president for clean, just, and competitive transition at the European Commission. “This is why we are investigating whether Google may have imposed unfair terms and conditions on publishers and content creators, while disadvantaging rival AI model developers, in violation of EU competition rules.”

The investigation is a priority for the Commission, but there is no defined timeline for its conclusion, so we may need to be patient for the outcome. Historically, the Commission has imposed significant fines on major tech companies for violating EU regulations, including a recent case involving a prominent social media platform, as well as previous actions against Apple and Meta.

Google has faced scrutiny from the Commission before, receiving a €2.4 billion fine for abusing its market position with shopping comparison services in 2024. That case originated in 2009, suggesting we might be in for a lengthy wait before this current investigation reaches a resolution.