Regulators in the US, European Union (EU), and the UK have issued a joint communiqué calling for effective, balanced competition in the generative artificial intelligence (AI) space. The UK’s Competition and Markets Authority (CMA) joined the European Commission (EC) and the Department of Justice and Federal Trade Commission in the US in outlining several key principles for regulating the technology, including the protection of fair dealing, guaranteeing the interoperability of AI products and ensuring consumers continued to enjoy real choice in the marketplace.
“As competition authorities for the European Union, the United Kingdom and the United States of America, we share a commitment to the interests of our people and economies,” said the competition watchdogs. “Guided by our respective laws, we will work to ensure effective competition and the fair and honest treatment of consumers and businesses. This is grounded in the knowledge that fair, open, and competitive markets will help unlock the opportunity, growth and innovation that these technologies could provide.”
Regulators vow to protect AI competition
All participating agencies emphasised their commitment to maintaining fair and competitive markets and using regulatory powers to address potential risks associated with these technologies. While the watchdogs acknowledged that AI has transformative potential, not least in its capacity to drive innovation and economic growth, the rapid development of new models also brings forth new risks that could impact competition. These risks include the possibility of firms restricting key inputs, establishing existing market power, and misusing partnerships and investments.
The communique’s authors also identified specific risks to competition, including concentrated control due to the specialised resources required for AI foundation models, which could allow a few firms to dominate the market and limit innovation.
Another concern is the potential for large incumbent digital firms to use their existing advantages to protect themselves from AI-driven disruption or extend their market power into AI-related areas. Additionally, partnerships and financial investments between firms may undermine competition if they are used to favour major players, as per the joint statement.
To address these risks, the authorities outlined several principles to protect competition in the AI ecosystem. These included promoting fair dealing to avoid exclusionary tactics, encouraging interoperability of AI products and services to foster competition and innovation. It will also ensure various options for businesses and consumers to prevent undue influence by any single entity.
The statement also acknowledges other potential competition risks, such as algorithmic collusion, price discrimination, and unfair practices. Its authors committed to monitoring and addressing these issues as AI technology develops.
Competition watchdogs increasingly assertive on AI
As far as consumer protections are concerned, the communique’s authors said that they would remain vigilant against deceptive or unfair practices related to AI, including safeguarding privacy, security, and ensuring transparency in the use of AI in products and services.
It can be noted that, in April 2024, the CMA expressed concerns over the dominance of six major tech firms, namely Google, Amazon, Microsoft, Meta, Apple, and Nvidia, within the foundation models value chain. The CMA’s update at that time revealed an extensive network of 90 investments and partnerships involving these firms. The same month saw the UK and US forge a new partnership focused on enhancing global AI safety and understanding.
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