Competition authorities in the EU, UK, and US see risks to fair competition from the market power of a few tech giants in the AI sector. In a joint statement, they call for action to protect consumers and competition.
Margrethe Vestager from the European Commission, Sarah Cardell from the UK's Competition and Markets Authority (CMA), Jonathan Kanter, Assistant Attorney General of the US Department of Justice, and Lina M. Khan, Chair of the US Federal Trade Commission (FTC), warn that a few companies could gain control over key resources such as specialized chips, computing power, and data.
This could have a significant impact on the future development of these technologies and hinder competition, they say.
The authorities also warn that large technology companies could use their existing market power in digital markets to extend it to AI markets. They advise scrutinizing partnerships and investments between incumbents and new entrants. This is already the case, with Microsoft, for example, providing much of the cloud computing for OpenAI, which is under scrutiny by the FTC and the EU Commission.
To ensure fair competition, antitrust authorities advocate interoperability between AI products and services, as well as real choice for businesses and consumers. They also stress the need to monitor the risk of price-fixing or unfair price discrimination by AI algorithms.
In their joint statement, the government representatives emphasized that AI has great potential for innovation and economic growth. However, given the rapid pace of development, they believe it's critical to address potential risks early "before they become entrenched or cause irreversible harm."
In addition to the risks to competition, the CMA, the US Department of Justice and the FTC also warn of the dangers AI poses to consumer protection. For example, the use of AI could make it easier for companies to use misleading or unfair practices. The authorities are therefore calling for transparency for consumers when companies use AI applications.
Meta and Apple recently showed what such power games can look like in practice. Both companies say they would rather not introduce their respective AI technologies in the EU as long as EU legislation is not adapted to their needs.
