France Fines Google 250 Million Euros for Breach of EU Intellectual Property Rules

France fined Google 250 million euros for EU intellectual property breaches, particularly its AI chatbot Bard's use of publishers' content.

On March 16, 2024, France's competition watchdog imposed a hefty fine of €250 million on Alphabet's Google for violating EU intellectual property rules in its dealings with media publishers. The fine translates to approximately $271.73 million.

AI Chatbot Controversy

The crackdown stemmed from concerns surrounding Google's AI-powered chatbot, initially named Bard but later rebranded as Gemini. The watchdog revealed that the chatbot had been trained on content sourced from publishers and news agencies without obtaining the necessary permissions.

Settlement and Remedial Measures

As part of the settlement proceedings, Google has not contested the allegations and has put forth a set of corrective actions to address the identified lapses. This includes addressing specific shortcomings in its practices.

Background of the Dispute

The fine is related to a copyright dispute in France, which originated from grievances raised by prominent news organizations, such as Agence France Presse (AFP), regarding online content. Notably, this case follows an earlier development in 2022 when Google dropped its appeal against a €500 million fine resulting from a comprehensive investigation by the Autorite de la Concurrence.

Violation of Commitments

Despite the prior settlement, the watchdog reported that Google had breached four out of seven commitments, which encompassed engaging in fair negotiations with publishers and ensuring transparency in its dealings.

AI Training Practices

The watchdog specifically pointed out Google's AI chatbot Bard, launched in 2023, stating that it was trained using data from various media outlets and news agencies without appropriate notifications or regulatory adherence. This, in turn, impeded the ability of publishers and press agencies to negotiate equitable compensation for their content.

Industry Context

The fine comes at a time when numerous publishers, authors, and news outlets are endeavoring to combat the unauthorized scraping of their online content by AI services, emphasizing the need for consent and fair remuneration. This echoes a similar legal action taken by The New York Times in 2023 against Google's competitors Microsoft and OpenAI, alleging the unauthorized use of millions of articles to train their respective chatbots.

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