A group of Democratic senators is calling on the Federal Trade Commission (FTC) and Department of Justice (DOJ) to investigate whether AI tools that summarize online content, such as news articles and recipes, may be engaging in anticompetitive practices. Led by Senator Amy Klobuchar (D-MN), the senators expressed their concerns in a letter, highlighting how these new AI developments are impacting creators and publishers at a vulnerable time.
As news outlets face unprecedented consolidation and job losses, the senators noted, "dominant online platforms, including Google and Meta, generate billions in advertising revenue from original content produced by others. New generative AI features threaten to deepen these existing issues."
The letter elaborates: While traditional search results may redirect users to a publisher’s website, AI-generated summaries keep users on the original platform. This allows the platform to profit from user engagement through advertising and data collection. Additionally, some generative AI tools are accused of misappropriating third-party content and presenting it as original content created by the platform’s AI.
Publishers who wish to prevent their content from being summarized in AI-generated results face a difficult choice: they must opt out of search indexing altogether, which would lead to a significant drop in referral traffic. Essentially, these tools may create a scenario where content creators are pitted against one another, providing no means to profit from content that is derived from their original works. This raises substantial competitive concerns in the digital marketplace for content and advertising revenues.
The senators argue that a few major companies dominate the market for monetizing original content through advertising, effectively manipulating that market to their advantage. They assert that content creators either have to consent to their works being used as raw material for AI or risk being excluded from the benefits entirely.
The letter urges the FTC and DOJ to investigate whether these emerging methods represent “exclusionary conduct or an unfair method of competition in violation of antitrust laws.”
While this is undoubtedly a serious matter affecting numerous stakeholders, the FTC faces significant challenges in this investigation. Demonstrating that AI developers possess overwhelming market power and are exploiting it in legally prohibited ways is no simple feat. Actions can be perceived as unethical or unfair without crossing legal boundaries.
Given the FTC’s proactive stance on similar issues, it’s likely that Senator Klobuchar and her colleagues are preparing the groundwork for further action. Klobuchar herself previously introduced a bill aimed at strengthening news licensing negotiations to empower local publications when requesting compensation from platforms like Google for their content.
A year later, concerns voiced in 2022 and early 2023 seem almost simplistic; the very companies accused of pressuring content creators are now alleged to be sidestepping the market altogether by providing content directly to AI for summarization.
Requesting regulatory intervention regarding undesirable practices serves as an official record that lawmakers can reference when crafting legislation. If the FTC and DOJ conclude that they have insufficient grounds for action, it allows signatories of the letter to propose new laws to empower the agencies. While last year’s efforts to support newspapers made little headway, a new proposal addressing fears surrounding AI might resonate more — particularly as it becomes a prominent talking point in the upcoming election cycle.
Co-signing the letter are Senators Richard Blumenthal (D-CT), Mazie Hirono (D-HI), Dick Durbin (D-IL), Sheldon Whitehouse (D-RI), Tammy Duckworth (D-IL), Elizabeth Warren (D-MA), and Tina Smith (D-MN).
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