FTC – COMPETITION AUTHORITIES ISSUE JOINT STATEMENT ON AI COMPETITION ISSUES

31/07/2024

US, UK and EU competition authorities FTC, DOJ, CMA and European Commission have issued a statement affirming their commitment to safeguarding competition within the artificial intelligence (“AI”) ecosystem. The purpose of the statement is to ensure effective competition that guarantees fair and honest treatment for both consumers and businesses in the fast-growing AI ecosystem.

All four competition authorities recognize the potential of AI as one of the most significant technological advancements in recent decades and aim to eliminate competition risks that could hinder the sector's development. Consequently, the authorities pledged in a joint statement to stay vigilant for any potential competition concerns. The joint statement identifies 3 main areas that can potentially raise competition concerns:

Concentrated control of key inputs: According to the statement, specialized chips, substantial compute, data at scale, and specialist technical expertise are critical aspects to develop AI foundation models. Small number of companies in a position to exploit existing or emerging bottlenecks across these issues may hinder competition.
Entrenching or extending market power in AI-related markets: Authorities state that through control of the channels of distribution of AI, major digital companies can prevent the AI-driven disruption since most of them already enjoy strong accumulated advantages.
Arrangements involving key players: Partnerships, financial investments and other connections between companies related to the development of AI could be used by major companies to undermine competitive threats and steer market outcomes.

The joint statement also clarifies that while each AI-driven competition concern will be addressed based on specific facts, common principles such as fair dealing, interoperability, and choice will generally serve to enable competition and foster innovation.

(FTC – 23.07.2024)

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FTC – COMPETITION AUTHORITIES ISSUE JOINT STATEMENT ON AI COMPETITION ISSUES

This document provides general information on the subject and does not constitute a legal opinion or recommendation. Consulting a specialist is recommended before taking an action. No claim arising from the content of or relating to this document can be asserted against NAZALI.