As generative AI-powered search services gain popularity, the unauthorized use of news articles has become a serious issue. AI search services collect information from the internet and provide users with AI-generated summaries. While more convenient than traditional keyword searches, these services have repeatedly used copyrighted content without permission.

Japan's Fair Trade Commission (FTC) has taken action on this matter. In October 2024, the FTC published a discussion paper titled "Competition in Generative AI" and launched an investigation into the generative AI market. In June 2025, the commission released an interim report highlighting concerns from an antitrust perspective.

Japan Newspaper Publishers & Editors Association: Potential Antitrust Violations

In July 2024, the Japan Newspaper Publishers & Editors Association issued a statement regarding the unauthorized use of news content by generative AI. The primary concern is search-enhanced generation services (RAG: Retrieval-Augmented Generation).

The association pointed out that dominant search providers using articles without permission could constitute "abuse of superior bargaining position" under Japan's Antimonopoly Act. The FTC's 2023 report suggested that search operators providing significant traffic to news sites may hold a superior position, forming the basis for this argument.

Furthermore, the Agency for Cultural Affairs indicated in March 2024 that using databases without permission for AI training could constitute copyright infringement, especially when the database owner plans to commercialize it. The association emphasized that unauthorized use of articles in search-enhanced AI services likely violates current copyright law.

Wave of Lawsuits: Three Major Newspapers Sue Perplexity

Legal action has already begun. In August 2025, Yomiuri Shimbun Group sued U.S. AI search service "Perplexity" in Tokyo District Court, seeking approximately 2.17 billion yen in damages and an injunction against unauthorized use. According to Yomiuri's investigation, Perplexity allegedly acquired and copied 119,467 articles without permission between February and June 2025.

On August 26, Asahi Shimbun and Nikkei jointly sued Perplexity, requesting 2.2 billion yen each, totaling 4.4 billion yen in damages. Both companies claim that despite implementing "robots.txt" technical measures to refuse content usage, Perplexity ignored these and continued collecting their content.

The lawsuit alleges violations of copyright law's reproduction rights, adaptation rights, and public transmission rights, as well as unfair competition prevention law violations due to displaying false information.

FTC Investigation: Market Dominance and Competition Risks

The FTC's investigation analyzes the generative AI market across three layers: "Infrastructure," "Model," and "Application." Key concerns include "tying" and "access restriction/exclusion" by companies with strong existing market positions.

Specifically, companies with overwhelming search service market share integrating generative AI features could make it difficult for competitors' products to gain market adoption. Concerns also exist about companies with strong positions in specific fields, such as GPU manufacturers or smartphone OS providers, using that position to hinder new market entrants.

The June 2025 interim report noted that while no specific problematic cases have been identified currently, market foreclosure effects could constitute antitrust violations. The FTC plans to continue investigations and compile the next report by the end of fiscal year 2025.

International Movements: Regulatory Strengthening in Europe and America

This issue extends beyond Japan. In March 2024, France's Competition Authority fined Google 250 million euros (approximately 43 billion yen) for unauthorized use of media articles in AI development.

In the United States, the News Media Alliance (NMA) requested in May 2024 that the Department of Justice and Federal Trade Commission halt service expansion by certain generative AI providers allegedly misusing articles.

However, some movements involve paying for article usage rights. In May 2024, OpenAI announced a partnership with News Corporation, publisher of the Wall Street Journal, paying appropriate fees for AI training and summarization using their content.

Business Model Impact: The Zero-Click Search Threat

News organizations are particularly concerned about "zero-click searches." This phenomenon occurs when AI search services provide article summaries, eliminating users' need to visit original news sites.

News organizations rely on two revenue pillars: advertising and subscription income. However, if AI search provides the content, both revenue sources disappear simultaneously. The Newspaper Publishers Association warns that allowing such "free-riding" would diminish content reproduction, harming democracy and cultural development.

Cases have been reported where even paid subscriber-only articles were used in AI search responses. The situation where journalism requiring enormous time and effort is used en masse without compensation threatens the very foundation of news organizations.

Future Outlook: Balancing Innovation and Rights Protection

While generative AI has potential to bring new innovation to society, it also carries risks including copyright infringement and spread of misinformation. The FTC investigation aims to maintain fair competitive environments while ensuring sustainable generative AI development.

The FTC has opened a new "Generative AI Information Submission Form" to solicit broad information. The commission plans to analyze 712 submissions and approximately 50 interviews to formulate antimonopoly law perspectives.

In rapidly evolving AI markets, intervention after competition is hindered becomes too late. Therefore, the FTC is conducting investigations more quickly and flexibly than conventional market surveys.

Healthy generative AI development in Japan requires both copyright protection and fair competition assurance. The lawsuit outcomes and FTC investigation results will significantly influence future rule-making.

How is the use of news articles by AI search services viewed in your country? Please share your thoughts in the comments!