Regulatory Authorities Move to Restrain Big Tech Control
The UK’s Competition and Markets Authority (CMA) has launched a new investigation into Google’s investment in the British artificial intelligence firm, Anthropic, as part of its efforts to rein in the power of major tech companies in the AI industry.
A Major Investment from Alphabet in Anthropic
Last year, Alphabet, Google’s parent company, poured $2 billion into Anthropic and also entered into a significant cloud computing agreement. This raised alarms about the potential effects of the deal on market competition.
Investigation Results Expected by December
The CMA has stated that it will assess the market implications of this deal and aims to release the findings of the investigation by December 19, according to reports from Bloomberg and Al Arabiya Business.
Amazon and Microsoft Under Similar Scrutiny
Amazon has been under a similar investigation regarding its $4 billion investment in Anthropic, which ultimately received approval, as Anthropic’s local revenue in the UK was minimal and did not pose a significant threat to the market. Meanwhile, Microsoft may also face scrutiny over its investment in OpenAI, the company behind Chat.
These investigations arise amid increasing global worries regarding the power of major tech firms and their effects on innovation and competition in essential areas such as artificial intelligence. With British and European regulatory bodies keeping a close eye on these investments, it remains to be seen if these measures will effectively limit the sway of these companies. The forthcoming report from the UK’s Competition and Markets Authority, anticipated in December, is expected to influence the trajectory of these investments and could significantly affect global competition in the AI sector.
