Dive Brief:
- Google is mandated to provide third-party data access to its AI functionalities and search engine to adhere to the European Union’s Digital Markets Act, as stated by the European Commission on Monday, which serves as the executive entity for enforcing EU legislation.
- Third-party AI service providers must obtain “equally effective” access to the same data utilized by Google’s proprietary AI tools, including advanced models like Gemini.
Additionally, Google is required to permit third-party search engine operators access to specific data metrics stored within Google Search, further necessitating enhancements in interoperability with the various hardware and software integrated into its Android ecosystem, according to the commission. - The commission’s inquiry does not stem from legal violations and will not incur penalties, as clarified by Google. “Android is inherently open, and we are already licensing search data to competitors per the DMA,” commented Clare Kelly, senior competition counsel at Google.
Dive Insight:
Google is facing escalating demands from both the EU and the U.S. to augment data-sharing practices with competitors, amid an intensifying competition for AI supremacy.
While the company contends that fulfilling the data-sharing stipulations prescribed by the DMA poses privacy hazards, regulators maintain that such access will enhance market competition.
“We harbor concerns that additional regulations, often rooted in competitive grievances rather than consumer welfare, could jeopardize user privacy, security, and innovation,” Kelly expressed.
The Digital Markets Act, enacted in 2022, targets prominent online platforms, aiming to democratize digital markets by compelling corporations such as Google, Apple, Amazon, Meta, and Microsoft to share data and foster enhanced interoperability.
AI, in particular, is “revolutionizing the manner in which we seek and receive information online,” remarked Teresa Ribera, Executive Vice President for clean, just, and competitive transition for the Commission, during the Tuesday briefing.
“Our aim is to maximize the potential and advantages of this significant technological transition by ensuring the market remains open and equitable, rather than skewed in favor of a select few,” Ribera stated.
U.S. officials also express unease regarding Google’s data monopoly.
A U.S. magistrate in 2024 found Google culpable of maintaining an illegal monopoly over online search in litigation instigated by the U.S.
Department of Justice during the Trump administration, directing the enterprise to share data with competitors and curtail exclusive contracts to bolster competition.
On January 16, Google filed a notice to contest the ruling and petitioned the court to suspend its data-sharing directive.
“These mandates could endanger Americans’ privacy and dissuade competitors from creating their own products—ultimately hindering the innovation that secures the U.S. at the forefront of global technology,” declared Lee-Anne Mulholland, Google’s VP of regulatory affairs, in a blog post.
The regulatory milieu in the U.S. has altered post-Trump’s second administration, during which he initiated the Department of Government Efficiency to curtail federal enforcement capabilities and unwind regulations.
Trump also initiated various projects, including Stargate and the Genesis Mission, aimed at developing AI infrastructure in the U.S. and establishing a national AI platform, collaborating with technology firms such as Google, AWS, Microsoft, and OpenAI.
Source link: Ciodive.com.
