Google (GOOGL) Stock: Faces Fresh EU Scrutiny as Regulators Question AI Use

TLDRs;

• The EU has opened a sweeping antitrust probe into Google’s AI tools and publisher compensation practices.

• Regulators aim to determine whether Google’s AI Overviews use publisher content without fair licensing or payment.

• Past Google investigations took years and resulted in multibillion-euro fines, shaping expectations for this new case.

• Rights-tech startups may benefit as Europe pushes for structured AI-era licensing and stronger protections for press publishers

The European Union has opened a major antitrust investigation into Google, marking one of the bloc’s most consequential inquiries into artificial intelligence to date. Regulators are examining whether Google’s rapidly expanding AI features depend heavily on online publishers’ content, and whether the company is compensating rights holders fairly.

Following the announcement, Alphabet Inc. (GOOG) shares dipped 0.19%, reflecting investor caution over potential regulatory fallout.

Alphabet Inc., GOOG

The probe, announced this week, will assess how Google deploys AI tools such as AI Overviews and AI Mode, both of which summarize information scraped from across the web. EU officials want to determine if these tools give Google an unfair advantage in search and online content markets by leaning on publishers’ material without appropriate licensing.

Alphabet, Google’s parent company, now faces another high-stakes battle with European regulators, adding to a long history of scrutiny across its search, ad, and mobile businesses.

Google’s AI Tools Under the Microscope

At the center of the inquiry is the question of how Google builds and presents AI-generated answers. With AI Overviews now appearing across billions of search queries, publishers fear a future in which their content is used to power Google’s AI while their websites receive fewer direct visits.

Regulators are investigating whether such systems effectively “lift” information without fair compensation, undermining competition and weakening revenue streams for media outlets.

The EU is also studying contract terms offered to publishers, including whether Google imposes unfair licensing conditions or pressures smaller publishers into agreements with limited transparency.

Historic Fines Set the Stage for a Lengthy Battle

This is not the first time Google has faced a sprawling EU inquiry. Past antitrust cases, ranging from Shopping (2010–2017) to Android (2015–2018) to AdSense (2013–2019), spanned three to seven years and collectively resulted in over €8 billion in fines.

While these penalties were significant, regulators stopped short of requiring structural breakups. Instead, Google implemented solutions such as app unbundling and choice screens.More recently, the EU pursued a faster timeline in its ad tech case, issuing a €2.95 billion fine and giving Google 60 days to propose remedies.

Still, appeals have historically slowed final enforcement, and experts expect this new AI-focused case to follow a similarly prolonged trajectory. A formal Statement of Objections could arrive within one to three years, with final rulings years after that.

Publishers and Rights Groups See an Opening

European publishers, especially in France, Denmark, and the Netherlands, have become increasingly vocal about AI-era licensing and copyright enforcement. Under Article 15 of the EU Copyright Directive, press publishers hold exclusive rights over the reproduction and online availability of their content. Authors are also legally entitled to receive a share of revenue from licensing deals.

Collective Management Organizations (CMOs), long established in the music industry, are now being positioned to handle large-scale licensing for journalism and online content. These CMOs already operate in Denmark and the Netherlands, offering a proven structure for distributing royalties to thousands of rights holders.

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