The CMA had been investigating whether Google could exert influence at the board level or through a technical reliance on Google's infrastructure. However, it found no evidence that Google has the ability to exercise material influence over Anthropic through the partnership. Furthermore, Anthropic did not meet the "turnover test" to qualify for investigation, as its UK turnover doesn't exceed £70 million.
Key takeaways:
- The U.K.’s Competition and Markets Authority (CMA) has approved Alphabet’s partnership and investment in AI rival Anthropic, stating it doesn’t qualify for investigation under current merger regulations.
- Alphabet had reportedly invested $300 million in Anthropic early last year, followed by another $2 billion. Amazon had also invested $4 billion in Anthropic.
- The CMA has stated that it “does not believe that Google has acquired material influence over Anthropic as a result of the partnership.”
- Anthropic didn’t meet the so-called “turnover test” to qualify for investigation, as Anthropic’s U.K. turnover doesn’t exceed £70 million.