BRUSSELS — The European Commission has opened an antitrust investigation into
whether Google breached EU competition rules by using the content of web
publishers, as well as video uploaded to YouTube, for artificial intelligence
purposes.
The investigation will examine whether Google is distorting competition by
imposing unfair terms and conditions on publishers and content creators, or by
granting itself privileged access to such content, thus placing rival AI models
at a disadvantage, the Commission said on Tuesday.
In a statement, the EU executive said it was concerned that Google may have used
the content of web publishers to provide generative AI-powered services on its
search results pages without appropriate compensation to publishers, and without
offering them the possibility to refuse such use of their content.
Further, it said that the U.S. search giant may have used video and other
content uploaded on YouTube to train Google’s generative AI models without
compensating creators and without offering them the possibility to refuse such
use of their content.
The formal antitrust probe follows Google’s rollout of AI-driven search results,
which resulted in a drop in traffic to online news sites.
Google was fined nearly €3 billion in September for abusing its dominance in
online advertising. It has proposed technical remedies over that penalty, but
resisted a call by EU competition chief Teresa Ribera to break itself up.
Tag - EU competition
BRUSSELS — A bid to revive a European football Super League is unlikely to find
a sympathetic audience in Brussels despite the court victory the breakaway
contest scored last week.
A Spanish appeals court called foul on European football’s organizing body,
ruling that UEFA had illegally stifled an attempt by a dozen top clubs from
Spain, Italy and England to form their own contest.
The EU “will continue to advocate for the strengthening of our sport model, our
national leagues and grassroot sport,” Glenn Micallef, commissioner for culture
and sport, said in a statement to POLITICO reacting to the judgment.
The Maltese commissioner said the EU executive would continue to work with UEFA
and LaLiga — the European and Spanish federations found by the Madrid court to
have breached EU competition law — in order to ensure that money is
redistributed from the top clubs to amateur leagues.
In June, the Spanish competition authority opened an antitrust investigation
into UEFA’s conduct, a case which observers — including a former advocate
general — think should be taken up by the European Commission.
“[The Super League] contradicts the principles of the European Sports Model and
collapsed in 2021 because it was a bad idea from the start,” said Micallef,
noting that it was rejected by fans, players and governments across Europe at
the time.
The commissioner’s comment follows the European Parliament’s adoption of a
resolution in October that stated the legislative body’s opposition to
“breakaway competitions.”
Both Real Madrid and A22 Sports Management have said that they will seek damages
from UEFA following the court ruling.
Both Real Madrid and A22 Sports Management have said that they will seek damages
from UEFA following the court ruling. | Sven Hoppe/Getty Images
Despite the Super League’s collapse in 2021, its backers have continued to try
to organize a breakaway competition.
In response to last Wednesday’s judgment, A22 said that it had held extensive
discussions with UEFA officials aimed at creating an open, cross-border football
competition, but that the Switzerland-based federation “refused to pursue a
compromise.”
“UEFA is clearly legally obliged to recognise A22’s right to organize
competitions on an equal footing with their own,” the firm said in a statement.
UEFA has said that it will carefully review the judgment before deciding on
further steps.
The European Commission has opened a door marked danger. In July it issued a
guidance letter blessing the creation of what is known as an Automotive
Licensing Negotiation Group (Auto LNG). In doing so, it gave the green light to
rival carmakers to form a cartel-like entity to negotiate licenses for patents
that underpin standardized technologies (standards essential patents, or
SEPs).
>
SEPs are vital in many industries because they enable devices and services to
interoperate seamlessly across different manufacturers, platforms and
geographies. They cover technologies such as Wi-Fi, 5G and video coding, and are
integral to the Internet of Things.
> SEPs are vital in many industries because they enable devices and services to
> interoperate seamlessly across different manufacturers, platforms and
> geographies.
For decades, EU competition law treated the collective bargaining among
competitors that LNGs of any kind represent as off-limits. The timing of the
change was not incidental.
In September the Commission also released draft revisions of its Technology
Transfer Block Exemption Regulation and Technology Transfer Guidelines (TTG).
Together, these texts shape how Europe manages its innovation economy, including
its SEP licensing market.
A success story at stake
On the positive side, the drafts reaffirm the importance of transparent patent
pools. Such pools bring together complementary SEPs owned by multiple parties
and make them available through a single license. Pools cut transaction costs,
create efficiencies and provide clarity to technology implementers.
SEP owners who contribute technology to a standard promise to license their
patents on fair, reasonable and non-discriminatory (FRAND) terms. Pools put that
commitment into practice by offering a single license that the market can accept
or reject.
The draft TTG strengthens requirements for transparency and governance in pools
by emphasizing the importance of essentiality checks, published terms, open
participation and safeguards against collusion. These measures codify practices
many pools already follow. In doing so, the Commission is rightly cementing
transparent pools’ role as trusted intermediaries in SEP licensing.
LNGs and FRAND cannot co-exist
Properly structured pools only succeed if implementers view their terms as
balanced; they cannot ‘enforce’ acceptance into existence. When the market
pushes back, pools adjust. That responsiveness makes them both pro-competitive
and self-correcting.
LNGs invert that logic. As coalitions of buyers, their explicit objective is to
aggregate purchasing power to secure discounts from the prevailing FRAND rate —
all while their members continue to use the technology. However, the
non-discrimination limb of FRAND makes across the board ‘group discounts’ very
hard to square with commitments owed to all implementers, including those that
have already taken licenses, directly or through a pool. This distorts
competition by enabling buyers to exert undue pressure on licensors.
The draft TTG seeks to allay concerns by requiring LNG participation to be open
and internally non-discriminatory, yet it does not grapple with the external
effect on the SEP holder’s non-discrimination duty. That omission risks forcing
a de facto “LNG rate” onto the whole market.
Asymmetry and holdout risk
The asymmetry here is striking. If price talks fail for tangible inputs,
suppliers can simply stop shipments. Not so with SEPs: once standardized, the
technology is embedded and keeps being used unless long, costly litigation is
pursued. This reality gives coordinated buyers leverage to delay or avoid paying
– a textbook recipe for holdout and cartel-like behavior.
Some argue that if licensors can license jointly through pools, licensees should
be able to do so in LNGs. This is false logic. Pools aggregate non-competing
assets to make complementary patents accessible. LNGs aggregate competing buyers
to dictate price, a monopsony dynamic that competition law has long treated with
suspicion. Pools, by contrast, have no such power. They live or die by market
acceptance. Their incentive is to align with existing demand.
Process shortcuts, shaky justifications
Equally troubling is how the Commission chose to act. The July letter was issued
under an ‘informal guidance’ procedure, an opaque tool usually used to clarify
cutting-edge cases. SEP holders and smaller innovators were not consulted,
despite being directly affected.
The substantive justification is no better. Both the Commission and Germany’s
Bundeskartellamt, which had previously authorized the ALNG in June 2024, leaned
on a market-share threshold, finding automakers represent less than 15 percent
of the ‘general mobile communications’ market.
However, connected cars represent a completely separate vertical, with distinct
technical features like vehicle-to-vehicle communication, and the market
threshold should apply to it specifically. Furthermore, in licensing markets, a
coordinated 15 percent holdout can freeze dealmaking across the board. That risk
is ignored.
> Connected cars represent a completely separate vertical, with distinct
> technical features.
Meanwhile, the invocation of decarbonization as a reason to tolerate cartel-like
structures conflates policy domains. Climate objectives, however worthy, cannot
excuse weakening competition law guardrails.
Keep the back door closed
Pools already deliver the benefits LNGs claim — lower transaction costs, broader
access, transparent terms, market efficiencies — without cartel risks. Most
importantly, the FRAND framework, tested in courts and practice, continues to
support rapid technology rollouts across the EU and is fully compatible with
pools. It is utterly incompatible with LNGs. To adhere to FRAND principles that
are the cornerstone of SEP licensing worldwide, LNGs cannot exist.
> Pools already deliver the benefits LNGs claim — lower transaction costs,
> broader access, transparent terms, market efficiencies — without cartel risks.
If the Commission wants to modernize SEP policy, it should do so openly and only
when market failures are identified. This involves consultation to establish
clear criteria and evidence of consumer benefit. By contrast, its current
approach threatens to disrupt efficient markets, squeeze royalties that fund
research and development, and slow Europe’s pace of innovation.
In reinforcing transparent pools, the Commission got one big thing right with
its draft TTG. It should not squander that by blessing LNGs.
Roberto Dini has more than 40 years’ experience in patent licensing and is
recognized as one of the global market’s most respected experts.
For a detailed analysis of the legal, economic and procedural defects in the
Auto LNG approach — and a fuller comparison between pools and LNGs — see: Auto
Licensing Negotiation Groups are a Bad, Anticompetitive Idea.
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From a picturesque mountain resort in Austria, at the European Forum Alpbach,
host Sarah Wheaton unpacks fresh threats by the U.S. to hit countries with
tariffs over their digital rules — drawing instant reactions from the European
Commission’s Sabine Weyand and Nobel laureate Joseph Stiglitz. She then sits
down with former Spanish Foreign Minister — now dean of the Paris School of
International Affairs at Sciences Po — Arancha González Laya, to ask how Europe
can move from “limping along” to setting the pace on trade, tech and alliances.
Canada will rescind a planned digital services tax in order to advance stalled
trade talks with the U.S., Ottawa announced on Sunday.
The tax on the revenues produced by Canadian online users, which was due to go
into effect on Monday, angered Donald Trump, with the American president calling
it “a direct and blatant attack” on the U.S. Trump terminated trade talks with
Canada on Friday, blaming the “egregious” tax.
Referring to Canada, Trump wrote on Truth Social on Friday: “They are obviously
copying the European Union, which has done the same thing, and is currently
under discussion with us, also.”
After his government folded on the tax, Canadian Prime Minister Mark Carney and
the Trump administration agreed to resume trade talks, aiming to reach a deal by
July 21, according to Canada’s Department of Finance.
Trump has repeatedly railed against “non-tariff barriers” imposed by other
countries — particularly regulations and taxes on the tech industry.
Britain’s digital services tax caught Trump’s attention, though Britain’s trade
secretary told POLITICO last week that reducing it is not part of ongoing
U.S.-U.K. trade talks.
POLITICO and other outlets reported last week that Europe has indicated it’s
willing to be flexible on the Digital Markets Act to clinch a trade deal with
Washington. But in comments published Monday, EU competition chief Teresa Ribera
pushed back.
“We will not compromise … around sovereignty and around regulation on how to
work in our own market,” Ribera told The Capitol Forum, per excerpts from an
interview seen by POLITICO.
With a July 9 deadline looming — and U.S. tariffs set to kick in — major EU
players are split over whether to rush a deal or hold firm to secure better
terms.