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Google Faces New Scrutiny Over AI Data Privacy After €2.4B EU Antitrust Loss

Published September 12, 2024 2:10 PM
Kurt Robson
Published September 12, 2024 2:10 PM
By Kurt Robson
Verified by Samantha Dunn

Key Takeaways

  • Ireland’s Data Protection Commission has launched an inquiry into whether Google adequately protected personal data before using it to train its AI model.
  • Google has faced many antitrust disputes across various regions in recent years. 
  • Margrethe Vestager has played a pivotal role in the EU’s crackdown on Big Tech.

Google has become the subject of more scrutiny from the EU just days after losing its appeal against a massive €2.4 billion antitrust fine in 2017.

On Thursday Sept. 12, the EU lead privacy regulator launched an inquiry into whether the company protected the personal data of European users before using it to train its AI model. 

More Scrutiny for Google 

Ireland’s Data Protection Commission (DPC) confirmed the investigation involved Alphabet’s Pathways Language Model 2 (PaLM 2).

“This statutory inquiry forms part of the wider efforts of the DPC, working in conjunction with its EU/EEA peer regulators, in regulating the processing of the personal data of EU/EEA data subjects in the development of AI models and systems,” the statement  read. 

Due to its European headquarters being based in Ireland, the DPC has played a central role in regulating and enforcing data protection laws on big tech companies such as Google, Meta, Apple, and others.

Google’s Long Run of Antitrust Disputes

Google faces a growing number of antitrust disputes across various regions.

Last month, a U.S. court ruled that the search engine giant had spent billions of dollars to create an illegal monopoly, which was the first major win for federal authorities against Big Tech’s dominance. 

The company’s slew of legal challenges has ramped up, particularly in the European Union, catalyzed by its Digital Markets Act , which came into effect in 2023. 

On Tuesday, Sept. 12, Google lost its final appeal against a €2.4 billion antitrust fine related to Google Shopping. 

Google originally received the fine in 2017 after the European Commission ruled that Google had purposefully placed Google Shopping, its price comparison service, above its rivals in search results. 

Throwing out Google’s appeal, the judge said : “In the light of the characteristics of the market and the specific circumstances of the case, Google’s conduct was discriminatory and did not fall within the scope of competition on the merits.” 

Margrethe Vestager Spearheads Big Tech Crackdown

Margrethe Vestager, the European Commissioner for Competition, has played a pivotal role in the EU’s crackdown on Big Tech – with Google facing particular scrutiny under her tenure.

Since taking office in 2014, Vestager has led several high-profile antitrust investigations and enforcement actions, making her one of the most influential global tech regulators.

Vestager has spearheaded three landmark antitrust cases against Google throughout her career, resulting in record fines for the search engine giant over several years.

Beyond Google, Vestager has been key in addressing the broader issue of big tech dominance in Europe, assessing the power of major companies such as Meta, Apple, and Amazon.

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