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French competition authority launches probe into Meta’s online advertising dominance

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The French competition authority announced on Wednesday that it has formally notified Meta Platforms (META.O) of allegations that the company abused its dominant position in the online advertising market. The ongoing investigation, expected to last several months, does not imply immediate liability.

The probe was triggered by a complaint filed in October 2022 by Adloox, an advertising platform now owned by U.S.-based Scope3. In addition, French media giants such as TF1, France TV, and BFM TV are pursuing legal action against Meta over alleged unlawful business practices in the advertising sector.

Meta also faces a high-profile trial in Spain this October, where over 80 media companies have lodged a €551 million ($645 million) complaint accusing the firm of unfair competition in advertising.

Earlier this year, online rights groups filed complaints across Europe targeting Meta’s advertising practices. On the same day as the French announcement, EU antitrust regulators fined Meta and Apple for violations of European Union laws.

EU Antitrust Complaint Filed Against Google Over AI Overviews by Independent Publishers

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A coalition of independent publishers has lodged an antitrust complaint with the European Commission, accusing Alphabet’s Google of abusing its dominance in online search through its AI-generated “AI Overviews” feature, which summarizes web content atop search results.

Summary:

  • The Complaint:
    The Independent Publishers Alliance, along with groups like the Movement for an Open Web and Foxglove Legal Community Interest Company, claim Google’s AI Overviews harm publishers by reducing traffic, readership, and revenue. These AI summaries appear above traditional search links in over 100 countries and started displaying ads last May.

  • Allegations:

    • Google is accused of misusing publishers’ original content without consent by feeding it into AI models that generate these summaries.

    • Google’s placement of AI Overviews at the top of search results allegedly disadvantages original publisher content, lowering their visibility.

    • Publishers cannot opt out of having their content used for AI training or summaries without also losing presence in Google Search results.

  • Legal Action and Requests:
    The publishers have asked the European Commission for an interim measure to prevent what they describe as “irreparable harm” to their businesses and competition in the news sector. Similar complaints have also been filed with the UK Competition and Markets Authority.

  • Google’s Response:
    Google argues it drives billions of clicks to websites daily and that new AI features in Search offer more discovery opportunities for content providers. It also disputes claims about traffic loss, attributing fluctuations to other factors like seasonal trends and search algorithm updates.

  • Broader Context:
    This EU complaint echoes a recent U.S. lawsuit by an educational technology company alleging that AI Overviews decrease demand for original content, causing drops in visitors and subscriptions.

  • Significance:
    The case raises important questions about the balance between AI innovation in search and the sustainability of independent journalism and publisher rights in the digital economy.

EU Digital Rules Hurting Innovation and European Users

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Google is warning that the European Union’s Digital Markets Act (DMA)—a sweeping antitrust law targeting Big Tech—is stifling innovation and leading to worse experiences for European consumers and businesses. The message will be delivered Tuesday at a European Commission workshop convened to allow Google critics to voice concerns and seek clarity.

Google’s legal team will argue that the new regulatory demands, intended to reduce the dominance of platforms like Google Shopping and Google Flights, are backfiring. According to Clare Kelly, one of Google’s lawyers, the company’s efforts to comply have resulted in clunky interfaces, higher ticket prices, and a 30% drop in direct booking traffic for airlines, hotels, and restaurants across Europe.

“We remain genuinely concerned about real world consequences of the DMA, which are leading to worse online products and experiences for Europeans,” Kelly is expected to say, according to remarks seen by Reuters.

The Digital Markets Act, which came into force in March 2024, imposes strict obligations on companies designated as “gatekeepers”, like Alphabet’s Google, Apple, Amazon, Meta, Microsoft, and ByteDance. Violations can result in fines up to 10% of global annual revenue.

In response to DMA scrutiny, Google has modified its search display to better highlight rival services, but critics say the changes don’t go far enough to ensure genuine competition. Google’s Oliver Bethell will call on regulators to provide clearer compliance guidelines to avoid delays and uncertainty.

“If we can understand precisely what compliance looks like, not just in theory, but taking account of on-the-ground experience, we can launch compliant services quickly and confidently across the EEA,” Bethell will say.

He also challenges Google’s critics to provide evidence-based analysis of both the costs and benefits of proposed remedies. “We need help identifying the areas where we should focus,” Bethell will argue, urging for data-driven input that can be jointly assessed with the Commission.

The Commission’s workshop—attended by EU officials, competition experts, and Google rivals—aims to clarify compliance expectations and evaluate whether the DMA is achieving its stated goals without unintended negative consequences.