Google faces EU antitrust investigation over using publisher and Youtube data to train AI

The European Union has launched a major formal investigation into whether Google has breached EU competition rules by leveraging the online content of web publishers and its own YouTube service to fuel its generative artificial intelligence (AI) models, such as Gemini and the new AI Overviews feature.

The decision places the technology giant under the spotlight once again regarding its dominance in the digital marketplace. Regulators in Brussels are concerned that Google is imposing unfair trading conditions on content creators and publishers, whilst simultaneously granting itself privileged, uncompensated access to their material, thereby hindering competition for rival AI developers.

The Core of the Investigation

The EU’s competition executive announced that the inquiry will specifically look at the ways by which Google ingests vast quantities of third-party data. The Commission believes Google may be distorting the emerging AI market by using content to generate its popular AI-powered services on search results pages without offering appropriate compensation to the original creators.

A key focus is the ability of publishers to refuse the use of their content without incurring the severe commercial penalty of losing access to Google Search traffic.

EU competition commissioner Teresa Ribera emphasised that while AI brings considerable benefits to Europe, technological advancement "cannot come at the expense of the principles at the heart of our societies." She stressed the importance of ensuring fair competition in the burgeoning AI landscape.

The investigation specifically addresses the dual standards surrounding content uploaded to YouTube. Content creators on Google’s video platform are currently obliged to grant the company permission to use their data for training generative AI models, often without specific remuneration for this use case.

Critically, the Commission alleges that rival AI model developers are barred by YouTube policies from accessing this vast repository of video content for their own training programmes. This practice gives Google a significant, potentially anti-competitive advantage over its rivals.

Google’s Response and Potential Penalty

Should Google be found in breach of its competition regulations, the company faces potential fines that could reach up to 10% of its global annual revenue.

In a swift rebuttal, a spokesperson for Google described the Commission's decision as "incorrect," asserting that the company's AI services operate within a fiercely competitive market and maintaining its intent to appeal against the formal probe. Google insists it will continue to collaborate with the news and creative industries as they navigate the transition into the AI era.

This latest action follows a recent wave of regulatory scrutiny targeting US tech firms, including a prior multi-billion-dollar penalty imposed on Google by the EU for antitrust violations in the advertising technology sector.