The ruling challenges the notion that AI-generated answers are merely compilations of third-party content

A German court has ruled that Google can be held directly liable for incorrect answers generated by its AI Overview feature, potentially setting a precedent for how AI-generated content is treated under the law. Google said on Friday that it planned to appeal.

Traditionally, platforms such as Google, Facebook, and X argue they merely host or display third-party content rather than publish it, limiting their liability. They have also maintained that warnings about potential inaccuracies should shield them from responsibility for errors in AI-generated outputs.

However, this spring, judges at the Munich Regional Court were asked to rule on two lawsuits filed against the internet giant by local publishers. The companies, whose identities have not been disclosed, alleged that Google's AI Overview feature - an AI-generated summary introduced last year that appears above traditional search results - falsely linked them to scams, subscription traps, and illegal business practices. According to the lawsuits, the AI mixed information from unrelated companies and created misleading associations that did not appear in the underlying sources.

According to a ruling published by The Decoder this week, the 26th Civil Chamber of the Munich Regional Court, which specializes in press and defamation law, issued a preliminary injunction on May 28 holding Google liable for claims generated by its AI Overviews in the cases. The judges said that, unlike a traditional search engine that displays links to third-party content, Google's AI produces "independent, new, and substantive statements," making the content attributable to the company itself.

The judges also dismissed Google's claim that users understand that AI can be inaccurate and can verify information themselves, describing AI Overviews as "a self-contained statement with independently comprehensible content."

The court ruled that as Google alone controls the algorithms behind AI Overviews, the company "must be held accountable" for false and defamatory outputs. It ordered Google to stop spreading the claims and bear 80% of the legal costs, with the plaintiffs each responsible for 10%.

Google said it disagreed with the ruling.

"We invest deeply in the quality of AI Overviews to ensure that the overwhelming majority of responses provide accurate information, and they are designed to reflect the information that exists on the web," a company spokesperson said in a statement to the media.

On Friday, the company told Reuters it planned to appeal, arguing that the case involved "specific and narrow errors" rather than the fundamental operation of AI Overviews.

Legal experts say the decision could have implications beyond Google. If upheld, it could set a precedent by treating AI-generated summaries as publisher-like content, which would make technology companies directly liable for any harms caused by AI, analysts warn.

The EU has repeatedly targeted US tech giants such as Apple, Google, Meta, and Microsoft with lawsuits and regulatory actions it says are aimed at curbing monopolistic practices and enforcing privacy rules. CNBC reported in April that Meta, Google, and Apple have faced roughly $7 billion in EU fines for antitrust and privacy violations since the start of 2024.

Earlier this month, reports emerged that the European Parliament is set to replace Google with a Franco-German-backed search engine as the default tool on its internal computers, citing "digital sovereignty." Critics, however, have portrayed the move as a form of digital protectionism. Washington has repeatedly accused Brussels of unfairly targeting US tech firms.

(RT.com)