The European Commission (EC) launched a new antitrust investigation into Alphabet’s Google on Tuesday. The probe focuses on whether Google unfairly used online content to train its artificial intelligence models. Specifically, the EC will examine if Google scraped data from publishers and content creators for services, including 'AI Overviews,' without offering proper payment or the option to refuse use.
This inquiry forms part of a broader regulatory crackdown by European authorities targeting U.S. tech giants. The investigation scrutinizes whether Google’s actions undercut rival AI developers who must pay for similar data. This regulatory pressure follows a significant €2.95 billion fine levied against Google in September over its adtech practices.
Alphabet's Class A stock dipped slightly in premarket trading on Tuesday, though the overall market reaction appeared muted. The investigation creates further uncertainty for Google’s AI strategy. A guilty verdict could result in a fine of up to 10% of its global annual revenue and force changes to the company's data-sourcing practices.