The European Commission, which is the 27-nation bloc's top antitrust enforcer, said it was examining whether Google has breached competition rules through its use of content from web publishers as well as material uploaded to YouTube for AI purposes.
Regulators are concerned that Google has given itself an unfair advantage by using content for two search services, AI Overviews and AI Mode, without paying publishers or letting them opt out.
AI Overviews automatically generates summaries that appear at the top of its traditional search results, while AI Mode provides chatbot-style answers to search queries.
They are also examining whether Google uses videos uploaded to YouTube under similar conditions to train its generative AI models, while shutting out rival AI model developers.
"This complaint risks stifling innovation in a market that is more competitive than ever," Google said in statement on Tuesday.
"Europeans deserve to benefit from the latest technologies and we will continue to work closely with the news and creative industries as they transition to the AI era."
The commission, which is the bloc's executive arm, is carrying out the investigation under the EU's longstanding competition regulations, rather than its newer Digital Markets Act that was was drawn up to prevent Big Tech companies monopolising online markets.
"AI is bringing remarkable innovation and many benefits for people and businesses across Europe, but this progress cannot come at the expense of the principles at the heart of our societies," Teresa Ribera, the commission's vice-president overseeing competition affairs, said in a statement.
"This is why we are investigating whether Google may have imposed unfair terms and conditions on publishers and content creators, while placing rival AI models developers at a disadvantage, in breach of EU competition rules."
Brussels has no deadline to wrap up the case, which could result in sanctions including a fine worth up to 10 per cent of the company's annual global revenue.
