Senate Leaders Ask FTC To Investigate AI Content Summaries As Anti-Competitive

An anonymous reader quotes a report from TechCrunch: A group of Democratic senators is urging the FTC and Justice Department to investigate whether AI tools that summarize and regurgitate online content like news and recipes may amount to anticompetitive practices. In a letter to the agencies, the senators, led by Amy Klobuchar (D-MN), explained their position that the latest AI features are hitting creators and publishers while they're down. As journalistic outlets experience unprecedented consolidation and layoffs, 'dominant online platforms, such as Google and Meta, generate billions of dollars per year in advertising revenue from news and other original content created by others. New generative AI features threaten to exacerbate these problems.'

The letter continues: 'While a traditional search result or news feed links may lead users to the publisher's website, an AI-generated summary keeps the users on the original search platform, where that platform alone can profit from the user's attention through advertising and data collection. [] Moreover, some generative AI features misappropriate third-party content and pass it off as novel content generated by the platform's AI. Publishers who wish to avoid having their content summarized in the form of AI-generated search results can only do so if they opt out of being indexed for search completely, which would result in a materially significant drop in referral traffic. In short, these tools may pit content creators against themselves without any recourse to profit from AI-generated content that was composed using their original content. This raises significant competitive concerns in the online marketplace for content and advertising revenues.'

Essentially, the senators are saying that a handful of major companies control the market for monetizing original content via advertising, and that those companies are rigging that market in their favor. Either you consent to having your articles, recipes, stories, and podcast transcripts indexed and used as raw material for an AI, or you're cut out of the loop. The letter goes on to ask the FTC and DOJ to investigate whether these new methods are 'a form of exclusionary conduct or an unfair method of competition in violation of the antitrust laws.' The letter was co-signed by 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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