The European Union initiated a "formal antitrust investigation" into Google, according to the BBC, focused specifically on the search giant's artificial intelligence functionality.

What's happening?

On Dec. 8, the EU issued a press release announcing its decision to investigate Google's generative AI and potentially unfair, monopolistic practices. 

Antitrust laws exist in a broad legal category and are enacted to protect everyday people, small businesses, and mid-sized businesses from overly powerful corporations.

When enforced, antitrust laws can hold bad actors to account and prevent companies from engaging in collusion or other coercive behavior. 

Google is no stranger to antitrust investigations: the EU initiated an antitrust investigation into the search giant in 2010, and in the U.S., the Federal Trade Commission announced the conclusion of a similar investigation in 2013.

The EU's current investigation pertains to Google's AI summaries, which routinely appear above search results. According to its press release, the EU is examining whether Google "breached EU competition rules" by using web-published and YouTube content "for artificial intelligence ('AI') purposes."

It cited several areas of concern related to Google's relative size and ability to wield it against smaller entities, including Google "granting itself privileged access to such content, thereby placing developers of rival AI models at a disadvantage."

Moreover, the EU expressed concern that, in addition to allegedly scraping published and video content for its sole benefit, Google did so without offering "appropriate compensation" to publishers and content creators.

As the BBC noted, Google's AI summaries were already controversial; publishers reported losing as much as 50% of their traffic, which has a direct correlation to revenue due to its effect on the number of advertising impressions, after the introduction of "AI Overview."

Why is this important?

"A free and democratic society depends on diverse media, open access to information," said Teresa Ribera of the European Commission. 

How often do you use AI tools? Every day 💯 Fairly regularly 🤖 Occasionally 🤷 Never ❌ Click your choice to see results and speak your mind.

"This is why we are investigating whether Google may have imposed unfair terms and conditions on publishers and content creators," Ribera added. 

Ribera emphasized Google's role in gatekeeping information and its consequences for democracy. 

In 2022, Wired suggested that Google Search had begun "quietly damaging" democracy, and research published in 2023 found that the rise of AI exacerbated the spread of misinformation.

Fairly Trained is a non-profit advocacy group established to ensure AI training doesn't exploit creators, and founder Ed Newton-Rex talked to the BBC about the EU's investigation. He explained that creators cannot opt out of using Google, effectively limiting their recourse — though either way, the prominent appearance of the results remains a paradigmatic change that produces an overall effect of fewer searchers clicking on the providers of any information they are seeking.

"This investigation could not come at a more critical time for creators around the world," Newton-Rex said.

What's being done about it?

As the EU's antitrust investigation kicked off, a Google spokesperson warned the BBC that it "risks stifling innovation" at a highly competitive moment.

Days earlier, the EU slapped X with a $140 million fine for various platform-related violations, possibly signaling a broader crackdown. On Dec. 5, CNBC reported that the U.S. government "finalized" penalties imposed upon Google in a previous antitrust suit.

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