Google, Apple, and other Big Tech companies are facing anti-trust scrutiny over the AV1 licensing plan.

The European Commission is investigating how the codec was developed and distributed.

Alliance for Open Media, or AOM, was formed in 2015 to build open source video technologies and standards for the masses. This combination provides significant improvements to VP9 and x264 codecs – AV1 – Short for AOMedia Video 1, one of the newest media formats on the block. However, European regulators have now confirmed the team’s initial investigation into the spread of AV1, which could lead to problems and penalties, especially in terms of licensing rules.

In a survey with a handful of technology companies a few months ago, the European Commission said the union and its members had been issuing royalty-free licensing contracts while distributing AV1 format to companies. Ownership is considered necessary to contribute to the details of the status quo. Importantly, these companies were not connected to AOM when AV1 was created.

The commission also wanted to know more about the patent for the new video format.

The Commission’s primary concern is that it may hinder the creation of AV1 license terms, making it impossible for new entities to flourish. It is not entirely clear how fines will be imposed, but each company involved in the cartel can eventually pay up to 10% of its annual revenue.

A spokesman for the European Union (EU) said it was investigating AOM, but did not comment on the matter. Normal response when diagnosis is in the early stages.

The move could be a prelude to EU policy changes planned for 2023, which could force Big Tech to change the way it manages online content.

AOM members, including Apple, Broadcom, Sisco, Google, Microsoft, Netflix and Tensent, did not respond to Reuters. Meanwhile, Amazon and Meta declined to comment on the alleged violations.

Platforms were slow to pick up AV1 in the early days, and most of the adoption was recent. Netflix started using AV1 a few years ago and is one of the few major platforms that supports Google Chrome, Microsoft Edge and YouTube. Mozilla Firefox is the latest web browser to launch AV1, as it did earlier this year. Broadly speaking, chip maker Qualcomm has announced that it will be able to solve future Snapdragon SoCs AV1 locally.