The UK Competition and Markets Authority (CMA) has formally commenced an investigation into e-commerce giant Amazon’s partnership with artificial intelligence (AI) startup Anthropic.
The competition regulator launched a Phase I inquiry to assess whether the partnership resulted in a relevant merger situation that may reduce competition in the UK market.
CMA said that it has ‘sufficient information’ regarding the transaction to undertake a formal investigation.
According to a government notice, the tie-up will be assessed under the merger provisions of the Enterprise Act 2002.
The deadline for the Phase 1 decision is 4 October 2024, following which, CMA may refer the transaction for a deeper ‘Phase 2’ scrutiny or green light the transaction.
Commenting on the probe, an Amazon spokesperson told Reuters in an emailed statement: “Amazon’s collaboration with Anthropic does not raise any competition concerns or meet the CMA’s own threshold for review.
“Amazon holds no board seat nor decision-making power at Anthropic, and Anthropic is free to work with any other provider (and indeed has multiple partners).”
Notably, Amazon completed a $4bn investment in Anthropic and acquired a minority stake in the company earlier this year.
The e-commerce company invested $1.25bn last September and injected an additional $2.75bn into the AI start-up in March 2024.
Anthropic is an AI safety and research company founded in 2021. The company has developed an AI assistant and chatbot called Claude.
Last month, CMA also launched a probe into Google parent Alphabet’s partnership with Anthropic.
