Investments in artificial intelligence by Alphabet Inc.’s Google, Apple Inc., and Microsoft Corp. warrant deeper scrutiny from the UK’s antitrust watchdog over concerns they are being leveraged to further entrench their market power.
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The Competition and Markets Authority said Thursday it has uncovered an “interconnected web” of partnerships and investments within AI involving a handful of the same tech firms, that may allow them “to shape these markets in their own interests.” Meta Platforms Inc., Amazon.com Inc. and Nvidia Corp. were also named.
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The findings come after the agency began a review into AI foundation models — AI systems that can be adapted to a range of tasks — to root out any potential competition issues in the fast-growing market. The CMA said it wanted to learn from the past in digital markets where a winner-takes-all dynamic led to the rise of a small number of all-powerful platforms.
“When we started this work, we were curious. Now, with a deeper understanding and having watched developments very closely, we have real concerns,” Sarah Cardell, chief executive officer of the CMA, said.
The CMA’s remarks reflect concerns around how the biggest US tech companies have acquired stakes in many of the most promising AI startups, deals that involve both funding and strategic access to infrastructure.
Microsoft is OpenAI’s biggest backer, has invested in French AI startup Mistral and recently hired most of the team from Inflection AI. Google, owner of the AI lab DeepMind, has invested in OpenAI rival Anthropic, as has Amazon. Chipmaker Nvidia has backed dozens of startups, including large language model startup Cohere.
Such deals may attract less regulatory scrutiny than full acquisitions, though the EU is probing Microsoft over the nature of its relationship to OpenAI and Mistral. Margrethe Vestager, the bloc’s antitrust chief also said Thursday that AI is going to change the marketplace and regulators need to be vigilant.
“We see a lot of entrenched market power when it comes to technology,” Vestager said in an interview with Bloomberg Television. “It’s really important that now when we have technology, which is not just a new technology but is basically a new world that we’re looking into, that we make sure it’s a competitive new world.”
The US Federal Trade Commission also launched inquiries into Alphabet, Amazon and Microsoft’s AI partners. The CMA also has a separate initial investigation into Microsoft’s OpenAI investment.
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The CMA will be assessing the market over the coming months and may use existing merger and investigations reviews to intervene. It is also considering whether to include this behavior in its new powers under the Digital Markets, Competition and Consumers Bill that will come into force this summer.
Google, Apple, Microsoft, Amazon, Nvidia and Meta didn’t immediately respond to requests for comment.
–With assistance from Katharine Gemmell, Katie Greifeld and Annmarie Hordern.
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
