Senators Urge FTC to Investigate AI Content Summaries as Anticompetitive

A group of Democratic senators, led by Senator Amy Klobuchar (D-MN), has called on the Federal Trade Commission (FTC) and the Department of Justice (DOJ) to investigate whether AI tools that summarize online content, such as news and recipes, may constitute anticompetitive behavior. These AI tools, often used by major platforms like Google and Meta, are raising concerns about their impact on creators and publishers.

Impact on Content Creators and Publishers

In their letter, the senators expressed concern that AI features are making it harder for creators and publishers to thrive, particularly as many news outlets are grappling with consolidation and widespread 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,” the letter states, emphasizing that AI-generated summaries may worsen these challenges.

Traditionally, search results and news feed links direct users to a publisher’s website, allowing creators to profit from referral traffic and advertising. However, with AI-generated summaries, users remain on the platform where the content is summarized, benefiting the platform through ad revenue and data collection.

The Dilemma for Content Publishers

The senators argue that content creators are placed in a difficult position: if they want to avoid having their material used in AI-generated summaries, they must opt out of search indexing entirely. This would result in a significant loss of web traffic, leaving creators without a fair means to profit from their original work.

The letter describes this situation as potentially “exclusionary conduct” or an “unfair method of competition,” urging the FTC and DOJ to determine whether these AI tools violate antitrust laws.

High Bar for Antitrust Action

Despite the seriousness of the issue, proving anticompetitive behavior in this context may be challenging. The FTC would need to demonstrate that companies using AI tools possess overwhelming market power and are using it in ways specifically forbidden by law. While these practices may seem unfair, unethical actions are not always illegal under current antitrust laws.

A Legislative Path Forward

The senators, including Senators Amy Klobuchar (D-MN), Richard Blumenthal (D-CT), Mazie Hirono (D-HI), Dick Durbin (D-IL), Sheldon Whitehouse (D-RI), Tammy Duckworth (D-IL), Elizabeth Warren (D-MA), Tina Smith (D-MN), Peter Welch (D-VT), Ben Ray Luján (D-NM), Ed Markey (D-MA), Cory Booker (D-NJ), and Michael Bennet (D-CO), may be laying the groundwork for future legislation. Should the FTC and DOJ determine they cannot act under existing laws, lawmakers could propose new legislation to address the issue. Senator Klobuchar has previously introduced bills aimed at empowering local news outlets in their negotiations with major tech platforms, and AI-driven content summaries could be the next frontier in these efforts.

With AI now circumventing traditional content markets, these concerns are likely to gain more traction, particularly as elections approach and lawmakers look for ways to address the growing influence of AI in content creation and distribution.