Alphabet Inc.‘s GOOGL GOOG Google has been hit with an antitrust complaint by a group of independent publishers from the European Union. The complaint is related to Google’s AI Overviews, a feature that provides AI-generated summaries above traditional hyperlinks in search results.
What Happened: According to a Reuters report, the complaint is related to Google’s AI Overviews, a feature that provides AI-generated summaries above traditional hyperlinks in search results.
The group of independent publishers has complained to the European Union, alleging that Google is exploiting its market dominance in online search.
The document said, “Google’s core search engine service is misusing web content for Google’s AI Overviews in Google Search, which have caused, and continue to cause, significant harm to publishers, including news publishers in the form of traffic, readership and revenue loss.”
The complaint, dated June 30, also states that publishers using Google Search do not have the option to opt out from their material being used for AI Overviews without losing their ability to appear in general search results.
The complainants include the Independent Publishers Alliance, the Movement for an Open Web, and the British non-profit Foxglove Legal Community Interest Company.
The complaint also requests an interim measure to prevent further harm to competition and ensure access to news.
Why It Matters: This complaint is the latest in a series of antitrust challenges faced by Google. The tech giant has been under increasing scrutiny for its market dominance and business practices.
In June, Google offered to revamp its search results to avoid a hefty fine from the EU. The proposed changes were aimed at better showcasing rivals’ services, addressing the European Commission’s concerns over Google’s preferential treatment of its in-house services.
Earlier, in May, a U.S. federal judge hinted at scaling back the Justice Department’s proposed remedies for Google’s alleged search monopoly. The judge cited the fast-changing role of artificial intelligence in online search as a reason for potentially lighter remedies.
Despite these challenges, Google’s parent company, Alphabet, has continued to perform well. In its Q1 earnings report in April, the company reported strong revenue growth, driven by its advertising business. The company’s stock has also remained resilient, with analysts remaining optimistic about its long-term prospects.
According to Benzinga Edge Stock Rankings, Alphabet Inc. performs well when it comes to growth and quality, but lags in momentum. Additional performance details are available here.
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