EU Probes Google AI Over Content Use, Fairness Risks for Publishers

The European Commission has launched an antitrust investigation into Google's use of content from web publishers and YouTube for artificial intelligence (AI) purposes, raising concerns about potential breaches of EU competition rules. The probe will assess whether Google has unfairly restricted access to content for rival AI developers and whether it has imposed unfair terms on publishers and creators. The investigation also aims to determine if Google has used YouTube video content to train its AI models without offering appropriate compensation or opt-out options for creators.

Regulators are scrutinizing whether Google's AI Overviews and AI Mode-features that generate automated summaries and chatbot-style responses-rely on web content without compensating publishers or allowing them to refuse such use. The European Commission emphasized that publishers may feel compelled to accept unfavorable terms due to Google's dominance in search traffic, potentially violating Article 102 of the EU's Treaty on the Functioning of the European Union. The investigation could set a precedent for how AI companies source and use training data across the bloc.

Why the Standoff Happened

The European Commission is concerned that Google's AI initiatives, including AI Overviews and AI Mode, may have distorted competition by granting itself privileged access to content while disadvantaging rival AI developers. The investigation also extends to Google's use of YouTube content for AI training, which reportedly prohibits competing developers from accessing the same material. The Commission pointed to a broader issue in AI development: whether companies can exploit dominant market positions to extract content without offering fair compensation or meaningful opt-out options.

Publishers have long criticized AI Overviews for reducing website traffic. For example, the Daily Mail reported a 50% drop in clicks after Google introduced AI Overviews. This decline has significant financial consequences for media outlets that rely on search traffic for advertising revenue. The Commission is also examining whether Google's terms of use for YouTube content effectively force creators into a take-it-or-leave-it scenario, with the risk of reduced visibility if they refuse.

What This Means for Investors

For now, Google has dismissed the investigation as a risk to innovation, arguing that the AI market is more competitive than ever. The company stated it will continue working with news and creative industries during the transition to the AI era. However, if the European Commission finds Google in violation of antitrust rules, the tech giant could face fines and be forced to change its data practices. This would not only impact Google's AI development but also reshape how other tech firms approach content licensing and data usage in the EU.

Investors are watching to see how the probe could affect Google's AI expansion and its ability to maintain a competitive edge in a rapidly evolving industry. The outcome could influence regulatory approaches in other markets, particularly in the U.S., where Google has also faced antitrust scrutiny. For now, the investigation remains in its early stages, and no legal deadline has been set for its conclusion.

Risks to the Outlook

The investigation introduces regulatory and operational risks for Google and other AI developers. If the EU determines that Google has engaged in anticompetitive behavior, the company could be required to renegotiate terms with publishers and content creators, potentially limiting the scope of its AI training data. Additionally, the case could prompt stricter regulations on how AI models access and use content, especially in jurisdictions with growing concerns about fairness and transparency in AI development.

For publishers and content creators, the probe presents an opportunity to demand better compensation and control over their intellectual property. However, the EU investigation will take time to conclude, and immediate relief may not be available. As noted by campaign group Foxglove, urgent action is needed to protect independent media from being undercut by AI-generated summaries.