The European Commission, the European Union's top antitrust enforcer, has launched a significant investigation into whether Google has violated EU competition laws concerning its use of online content for artificial intelligence models and services. This probe focuses on Google's AI Overviews and AI Mode, two key products that generate AI summaries and chatbot-style answers above traditional search results.

Regulators are particularly concerned that Google may be leveraging content from websites and videos uploaded to YouTube without adequately compensating owners or offering them the ability to refuse without losing access to Google Search. The investigation will scrutinize whether Google grants itself privileged access to web publishers' content and imposes unfair terms and conditions on publishers and content creators, thereby potentially harming competition in the burgeoning AI market. The EU also questions Google's practice of preventing rival AI companies from utilizing YouTube content to train their own AI models, which could stifle innovation and create an uneven playing field.

Google, in response, stated that this complaint risks stifling innovation in a market that is more competitive than ever, asserting that Europeans deserve to benefit from the latest technologies and that the company will continue to collaborate with news and creative industries as they transition into the AI era.

This latest regulatory action by Brussels comes amidst a broader wave of legal challenges against AI model developers for alleged copyright infringement. Companies like Perplexity have faced lawsuits from numerous outlets, including The New York Times and Reddit, over the unauthorized use of content. However, the EU's investigation distinguishes itself by focusing on competition law rather than solely on copyright infringement or content-licensing deals, aiming to level the playing field for all AI companies competing with Google, which reportedly benefits from its extensive data access for training its models.

The European Commission is conducting this investigation under its longstanding competition regulations, separate from its newer Digital Markets Act designed to prevent Big Tech monopolies. Vice President Teresa Ribera, overseeing competition affairs, emphasized that while AI brings remarkable innovation, it must not come at the expense of societal principles. This follows other recent EU antitrust actions, including an investigation into WhatsApp's AI policy and a fine against X. EU officials have denied singling out American companies, asserting their focus is solely on potential illegal behavior and harm to competition and consumers within the bloc.

Google will have the opportunity to respond to the concerns raised by the Commission, which has also informed U.S. authorities about the investigation. While there is no set deadline to conclude the case, a finding against Google could lead to significant sanctions, including a fine amounting to up to 10% of the company's annual global revenue. Despite ongoing criticism of its AI regulation, the EU is also considering simplifying its AI rules and has proposed delaying implementation for high-risk AI applications.