Democratic Senators Urge FTC and DOJ to Investigate AI Tools’ Competitive Impact

A coalition of Democratic senators is calling on the Federal Trade Commission (FTC) and the Justice Department (DOJ) to look into whether AI tools that summarize and reproduce online content, such as news articles and recipes, could be considered anti-competitive behavior.
In a letter addressed to these agencies, led by Senator Amy Klobuchar (D-MN), the legislators highlighted their concerns that the latest AI advancements are adversely affecting creators and publishers, especially during a time of significant consolidation and layoffs within the journalism industry.
They pointed out that, “prominent online platforms like Google and Meta generate billions of dollars in ad revenue from original content created by others, further jeopardizing the situation for creators. New generative AI features are likely to intensify these challenges.”
The letter elaborated:
“While standard search results typically lead users to a publisher’s website, an AI-generated summary retains users on the initial platform, allowing that platform to profit from their engagement through ads and data aggregation. Furthermore, some generative AI tools misappropriate third-party content and falsely present it as original material generated by the platform’s AI.”
Publishers who want to exclude their content from being summarized by these AI tools are left with no choice but to completely opt out of search indexing, which leads to a significant decline in referral traffic. Essentially, this creates a scenario where content creators may find themselves in competition with their own works, without any means to gain from AI-generated content that utilized their original creations. This raises serious competitive concerns within the digital content and advertising sectors.
In essence, the senators argue that a select few major companies dominate the market for monetizing original content and that these companies are manipulating that market to their advantage. Content providers are faced with a tough choice: either allow their articles, recipes, stories, and podcast transcripts to be indexed and exploited for AI training or risk being excluded from potential traffic and revenue.
The letter also requests that the FTC and DOJ examine whether these practices constitute “a form of exclusionary conduct or an unfair method of competition in violation of antitrust laws.”
This issue is indeed pressing, particularly for media outlets, but the FTC may find the challenge substantial. Demonstrating that AI developers possess excessive market power while engaging in unlawful behaviors is a significant hurdle. Although practices may seem unfair or unethical, they can still legally coexist within market dynamics.
Given the FTC’s active stance on related matters, Senators Klobuchar and her colleagues may find their efforts well-received, as they set the stage for potential future actions. Klobuchar, in particular, has advocated for legislation to bolster the bargaining power of news organizations in negotiations for fair compensation for their content.
In the fast-evolving environment of 2023, previous concerns have seemingly escalated, with some asserting that companies previously accused of exerting pressure on content providers are now, prioritizing the AI route for summarizing content entirely.
Requesting regulatory scrutiny of unfavorable industry practices is a necessary step for lawmakers, paving the way for future legislation. If the FTC and DOJ conclude they are unable to intervene, the signatories of the letter could pursue new laws that prompt those agencies to take action. Even though last year’s bill aimed at protecting newsrooms did not progress significantly, a new proposal addressing anxieties over AI might garner better traction, especially as the election cycle looms.
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).