AI search services face competition probe in Japan

Investigation into AI search tools aims to address potential market dominance abuse and copyright concerns, building on earlier reviews of news distribution contracts.

Japan’s competition authority is investigating AI search platforms over concerns about news content usage and potential antitrust violations, following complaints from publishers and global precedents.

Japan’s competition authority will probe AI search services from major domestic and international tech firms. The investigation aims to identify potential antitrust violations rather than impose immediate sanctions.

The probe is expected to cover LY Corp., Google, Microsoft and AI providers such as OpenAI and Perplexity AI. Concerns centre on how AI systems present and utilise news content within search results.

Legal action by Japanese news organisations alleges unauthorised use of articles by AI services. Regulators are assessing whether such practices constitute abuse of market dominance.

The inquiry builds on a 2023 review of news distribution contracts that warned against the use of unfair terms for publishers. Similar investigations overseas, including within the EU, have guided the commission’s approach.

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