France’s competition watchdog fined Alphabet’s Google 250 million euros ($271.73 million) for breaches of EU intellectual property rules in its relationship with media publishers, citing concerns about the company’s AI services.
Google’s AI-powered chatbot
The watchdog claimed that Google’s AI-powered chatbot Bard, which has since been rebranded as Gemini, was trained on content from publishers and news agencies without their knowledge.
According to the watchdog, Google has agreed not to contest the facts as part of the settlement proceedings, and the company has also proposed a series of corrective measures for certain shortcomings.
Google said it accepted the settlement “because it is time to move on”, adding “we want to focus on the larger goal of sustainable approaches to connecting people with quality content and on working constructively with French publishers.”
The company argued that the fine was disproportionate and that the watchdog had not adequately considered its efforts “in an environment where it’s very hard to set a course because we can’t predict which way the wind will blow next.”
Copyright Dispute
The fine is related to a copyright dispute in France over online content, which was sparked by complaints from some of the country’s largest news organisations, including Agence France Presse (AFP).
The dispute appeared to be resolved in 2022, when the US tech behemoth dropped its appeal against an initial 500 million euro fine imposed at the conclusion of a major investigation by the Autorite de la Concurrence.
However, in a statement issued on Wednesday, the watchdog said Google violated four of the settlement’s seven commitments, including conducting good faith negotiations with publishers and providing transparent information.
The watchdog specifically mentioned Google’s AI chatbot Bard, which was launched in 2023 and was trained on data from unspecified media outlets and news agencies without the company informing them or the regulator.
“Subsequently, Google linked the use of the content concerned by its artificial intelligence service to the display of protected content”, the watchdog said, adding that in doing so
Google made it more difficult for publishers and press agencies to negotiate fair prices.
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