German media regulators have ruled that AI search engines and chatbots, including Google's AI Overviews and Perplexity, are content providers under the State Media Treaty. This marks the first time such services have been subject to media law. The Commission for Licensing and Supervision (ZAK) stated that AI-generated content is considered independently created rather than redistributed third-party material, making the liability shield under the Digital Services Act inapplicable. The ruling finds both companies violated Section 109 of the State Media Treaty and are subject to immediate enforcement. Google and Perplexity have one month to appeal the decision. Source: thedecoder

Regulators accuse Google of using AI summaries to push traditional links, particularly to journalistic sources, into the background. This allegedly constitutes prohibited discrimination under media law. The ZAK argues that AI-generated responses are the providers' own content, not neutral search results. A Munich court recently reached a similar conclusion, treating AI-generated text as independent content. The court said the responses contain 'independent, new, and substantive statements' produced by analyzing and combining material from various third-party sites. Google is now facing legal action under media law in addition to civil liability. Source: thedecoder

The rulings also apply to Perplexity, which was flagged for lacking a designated representative in Germany and missing transparency disclosures. Regulators argue that AI services act as intermediaries by shaping how users access content through link selection and placement. This triggers transparency rules meant to protect media diversity. 'Anyone who controls whether content gets found through the selection and placement of links must make that transparent,' said ZAK Chairman Dr. Thorsten Schmiege. A legal opinion by Professors Jan Oster and Christoph Busch supports the regulators' view, noting that AI changes how users access information and risks journalism's funding. Source: thedecoder