Google is under investigation in Europe for antitrust issues related to the content utilized for its artificial intelligence systems.

Google is currently under intense scrutiny from regulators within the European Union, following the commencement of a new investigation into the company’s utilization of online content for its artificial intelligence (AI) models and services. The inquiry began on Tuesday and is being led by the European Commission, the EU’s primary antitrust enforcement body, which is now evaluating whether Google’s practices may contravene established competition laws.

EU officials have expressed concern that Google’s activities could potentially create an unfair advantage in the marketplace. Specifically, the investigation is focused on the company’s use of content sourced from web publishers and user-uploaded videos on YouTube for its AI services, particularly two features known as AI Overviews and AI Mode. AI Overviews generate summaries that appear at the top of conventional search results, while AI Mode offers responses to queries in a conversational, chatbot format. Regulators are questioning whether Google has exploited this content without compensating the original publishers or allowing them the option to opt out.

Additionally, the regulators are probing whether Google employs YouTube videos under similar conditions to train its generative AI models, potentially marginalizing competitors in the AI development space. The inquiry’s scope suggests a desire to ascertain whether Google has imposed unfair terms that favor its own applications at the expense of other AI developers.

In response to the allegations, Google has indicated that such complaints could hinder innovation in a sector that is witnessing heightened competition. The company has emphasized its commitment to collaboration with the news and creative industries as they adapt to the evolving AI landscape.

This ongoing investigation falls under the EU’s established competition regulations, rather than the newer Digital Markets Act, which was specifically designed to curb monopolistic practices among major tech companies. The European Commission aims to strike a balance between fostering technological advancement and upholding the foundational principles of competition and consumer rights within the EU.

The Commission has recently initiated a separate antitrust inquiry into WhatsApp’s AI practices and has imposed a significant fine on X, the social media platform formerly known as Twitter, for violations of digital regulations. This raises questions about the focus of EU regulators on US-based technology firms, a claim EU officials have denied, asserting their investigations remain neutral with respect to company nationality.

As the inquiry progresses, Google will be afforded the opportunity to address the regulators’ concerns. The European Commission will keep U.S. authorities informed throughout this process. Importantly, there is no set timeframe for concluding this case, which carries the potential for substantial penalties, including fines amounting to 10% of the company’s annual global revenue.