Google Hit by EU Abuse of Dominance Probe Over AI Tools

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Google Hit by EU Abuse of Dominance Probe Over AI Tools.

companies :: 2025-12-09 :: source - bloomberg

By Samuel Stolton

(Bloomberg) -- Google has been hit by a European Union probe over suspicions the US tech giant is abusing its market power in its rollout of artificial intelligence, days after Meta Platforms Inc. was targeted by a similar probe.

In another move likely to stoke White House criticism, EU watchdogs said they will examine whether the Alphabet Inc. unit imposed unfair terms on content creators and giving its own AI model an advantage over its rivals.

Photographer: Ksenia Kuleshova/Bloomberg

“This case is once again a strong signal of our commitment to protecting the online press and other content creators, and to ensuring fair competition in emerging AI markets,” Teresa Ribera, the EU’s antitrust commissioner said in a Brussels speech on Tuesday.

Google said the EU case “risks stifling innovation in a market that is more competitive than ever. Europeans deserve to benefit from the latest technologies and we will continue to work closely with the news and creative industries as they transition to the AI era.”

The fresh probe follows September’s fine of almost €3 billion ($3.5 billion) against Google for allegedly favoring its own advertising technology services over rivals, which provoked the ire of US President Donald Trump, who slammed the fine as “discriminatory.”

Last week, the Trump administration lashed out at a fine for Elon Musk’s X for its violations of rules governing online content. The commission also raised eyebrows across the Atlantic by signing off on a probe into how tools on Meta’s WhatsApp may unfairly thwart rival AI providers.

Trump officials have particularly focused on a series of costly EU penalties against Big Tech firms, including more than €9.5 billion in fines against Google and a separate order for Apple to pay Ireland back taxes of €13 billion.

Trump has threatened to impose fresh tariffs and export restrictions on advanced technology over the issue. And US officials say they won’t ease 50% tariffs on steel and aluminum products until the EU loosens its tech rules.

The tech giant has also faced billions of other fines from the EU in the shape of a €4.13 billion Android penalty and a €2.42 billion fine for crushing shopping search rivals. A €1.49 billion AdSense levy was annulled last year.

On top of this, Google continues to face broader scrutiny under the Digital Markets Act in Brussels. The law came into effect in 2023 and is designed to keep the world’s largest technology platforms in line.

Under traditional EU antitrust rules, competition regulators can order companies to temporarily stop suspect business practices, but these demands can be challenged in the bloc’s courts in Luxembourg.

Eventual fines for breaching the EU antitrust rulebook can be as high as 10% of global annual revenue, although they rarely reach that level, especially if alleged wrongdoing is short-lived. Google will now be forced to submit solutions to appease regulators’ concerns.

(Updates with Meta probe starting in first paragraph)