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Google-Anthropic Partnership Grabs UK Watchdog’s Attention

The competition authority in Great Britain is investigating Google’s collaboration with the artificial intelligence (AI) startup Anthropic.

“Considering whether it is or may be the case that this partnership has resulted in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002,” the Competition and Markets Authority (CMA) stated on Tuesday, July 30.

If so, the CMA stated in its announcement that it will investigate “whether the creation of that relevant merger situation has resulted, or may be expected to result, in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.”

Interested parties have until August 13th to comment on the matter, according to the CMA.

With the possibility of much larger investments yet to come, Google contributed $500 million to Anthropic last year. Regulators have also expressed concern about similar AI-focused alliances, including the one between Microsoft and OpenAI.

Additionally, last week, antitrust authorities from the United States, the United Kingdom, and the European Union (EU) released a rare joint statement expressing their worries about market concentration and anti-competitive behavior in the generative artificial intelligence (AI) space, which is the technology behind well-known chatbots like OpenAI’s ChatGPT.

“There are risks that firms may attempt to restrict key inputs for the development of AI technologies,” the watchdogs cautioned, highlighting the need for action in a rapidly developing industry.

Three main concerns were identified by the regulators: entrenchment of market power, control over vital resources, and detrimental alliances. They expressed particular concern about the potential for current digital market leaders to abuse their positions.

According to the statement, which emphasized choice and interoperability, “the AI ecosystem will be better off the more that firms engage in fair dealing.”

According to the paper, “AI ethics encompasses a wide range of concerns, including privacy, bias, transparency, accountability, and the long-term societal impacts of AI.” “As AI systems become more sophisticated and autonomous, the ethical questions surrounding their development and deployment grow increasingly complex and urgent.”

Categories: Business
Archana Suryawanshi:
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