The European Commission announced a formal antitrust investigation into Alphabet Inc. on December 9, 2025, focusing on the company’s use of web publishers’ articles and YouTube videos to train its AI‑driven search features and generative‑AI models. The probe targets the AI‑Overviews and AI‑Mode search summaries, as well as the Gemini and Veo models, to determine whether Alphabet has used this content without proper compensation or opt‑out rights for publishers and content creators.
The investigation centers on whether Alphabet’s AI systems have gained a competitive advantage by training proprietary models on publicly available content while restricting third‑party AI developers from accessing the same data. If the Commission finds violations, Alphabet could face a fine of up to 10 % of its global annual revenue, a penalty that could reach several billions of euros given the company’s size. The probe follows a €2.95 billion fine imposed in September 2025 for antitrust violations in the online advertising sector and comes amid the EU’s broader Digital Markets Act and Digital Services Act, which impose stricter obligations on gatekeepers and platforms that handle large volumes of user data.
Alphabet’s spokesperson warned that the complaint “risks stifling innovation in a market that is more competitive than ever,” while publishers have expressed concern that AI‑Overviews and AI‑Mode services divert traffic from their sites and erode revenue. Some publishers have labeled the practice “double daylight robbery,” citing a lack of clear compensation mechanisms and opt‑out options for their content.
The investigation is part of a growing EU focus on AI regulation. The Commission has also opened probes into Meta’s AI practices, and the EU’s forthcoming AI Act and DSA are expected to impose additional transparency and accountability requirements on AI systems that process large datasets. If the DMA is expanded to cover AI, Alphabet could face even more stringent gatekeeper obligations, potentially reshaping its AI product roadmap and its relationships with content providers.
Investor sentiment has turned cautious, with analysts noting the uncertainty surrounding the potential fine and the regulatory pressure on Alphabet’s AI strategy. While no immediate market reaction data is available, the announcement signals a significant regulatory risk that could influence Alphabet’s future business decisions and its approach to data usage and partnership agreements.
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