AI-generated summaries of online content have become increasingly popular, but a group of Democratic senators is now raising concerns about their potential anticompetitive impact. Led by Amy Klobuchar, the senators are urging the Federal Trade Commission (FTC) and the Department of Justice (DOJ) to investigate whether these AI tools, used by platforms like Google and Meta, are unfairly benefiting these companies while harming creators and publishers.
The senators argue that as traditional media outlets face consolidation and layoffs, dominant online platforms generate substantial advertising revenue from news and original content created by others. The emergence of generative AI features, such as content summaries, further exacerbates these problems. While traditional search results and news feeds direct users to the publisher’s website, AI-generated summaries keep users on the search platform, allowing the platform to profit from their attention through advertising and data collection.
Moreover, some generative AI features go a step further by misappropriating third-party content and passing it off as original content generated by the platform’s AI. This creates a significant competitive concern in the online marketplace for content and advertising revenues, as publishers have limited options to avoid having their content summarized without experiencing a drop in referral traffic.
Essentially, the senators argue that a few major companies control the market for monetizing original content through advertising and are manipulating it in their favor. Content creators are left with no choice but to consent to having their content indexed and used by AI or risk being cut out of the loop entirely.
To address these concerns, the senators are calling for an investigation into whether these practices constitute exclusionary conduct or unfair competition violating antitrust laws. However, proving anticompetitive behavior in this context may be challenging. It would require demonstrating that AI makers have overwhelming market power and are using that power in specific ways prohibited by law.
Despite the potential difficulties, the FTC’s reputation for being vigilant on antitrust matters suggests that the senators’ concerns resonate with the agency. Senator Klobuchar, in particular, has been proactive in protecting journalism and local papers, introducing legislation to empower news outlets in licensing negotiations with tech giants. The concerns raised by the senators are not new; they build on existing efforts to address the power dynamics between content providers and platforms.
Asking regulators to investigate undesirable behaviors is often a preliminary step before proposing new legislation. If the FTC and DOJ are unable to take action, it paves the way for the signatories of this letter to introduce new laws that enable regulatory intervention. While previous attempts to save local newspapers through legislation may not have gained much traction, tying concerns about AI’s influence to the conversation may garner more attention, especially in an election cycle.
The letter was co-signed by Senators Richard Blumenthal, Mazie Hirono, Dick Durbin, Sheldon Whitehouse, Tammy Duckworth, Elizabeth Warren, and Tina Smith, highlighting the collective concern among lawmakers about the potential anticompetitive impact of AI-generated content summaries.
In conclusion, the call for an investigation into the anticompetitive practices associated with AI-generated content summaries is a significant step toward addressing the power dynamics between tech platforms and content creators. While the outcome of such an investigation remains uncertain, it underscores the need for increased scrutiny and regulatory action to ensure a fair and competitive online marketplace for content and advertising revenues.