The UK’s Competition and Markets Authority (CMA) is conducting a preliminary assessment of the partnership between Google and AI firm Anthropic. This scrutiny forms part of a wider investigation into alliances between tech corporations and emerging AI companies, as regulatory bodies try to understand the rapid advancement in technology and its implications on competition and user rights.
Google invested £2bn in Anthropic in 2023, a company renowned for creating Claude LLM and a unique chatbot. This partnership is now under review by the CMA, looking at its potential to develop into a “relevant merger situation”. The CMA is also inviting public input on the matter.
Troubling concerns over competition in the generative AI industry triggered the CMA’s investigation. They are also scrutinising a deal between Amazon and Anthropic, with the former committing to be a significant cloud computing provider for the latter, in exchange for a £4bn stake.
Simultaneously, the CMA is examining the alliances between OpenAI and Microsoft, which has invested heavily in the commercial divisiotp>
There are increasing concerns over giant tech companies consolidating power.
Assessing UK’s handling of AI partnerships
This fear is fuelled by the fact that outright takeovers are rare, especially in highly competitive sectors such as AI. In the face of these concerns, lawmakers are actively discussing solutions to reduce the influence of tech giants and empower smaller entities for healthy competition. Regulations to prevent potential market abuses are also being considered.
The CMA is determined to maintain a balanced market ecosystem and is reviewing acquisitions, mergers, and any practices that appear to limit competition. To deter monopolistic behaviour, they are also considering imposing stringent regulations, a move which aids small businesses and startups.
The goal is to create an accountable and competitive global tech industry, avoiding situations where a few mammoths dominate the market and stifle innovation and consumer choice. This move signifies a focus on public interest, ensuring benefits for many rather than a select few.
Despite these investigations, Anthropic denies any intention of a merger and continues to assert its independence. Similarly, Google maintains that their partnership does not infringe on Anthropic’s choice of cloud providers and does not demand any exclusive tech privileges.
