The CMA is closely monitoring GAMMA's partnerships and is increasing its use of merger review to determine if any of these arrangements violate existing merger rules. The regulator is also urging AI giants to adhere to the seven development principles it set out last fall, which include accountability, access, diversity, choice, flexibility, fair dealing, and transparency. The CMA's stance reflects a shift from its initial relaxed position on the GenAI market, as it now seeks to ensure fair competition and consumer protection in this rapidly evolving sector.
Key takeaways:
- The Competition and Markets Authority (CMA) in the U.K. has expressed concerns about the increasing concentration and interconnection in the advanced AI market, particularly the dominance of Google, Amazon, Microsoft, Meta, and Apple (GAMMA).
- The CMA warned that the growing presence of these tech giants across the AI value chain could lead to negative market outcomes, such as reduced choice and quality, and increased prices.
- The CMA is closely monitoring the partnerships of these tech giants and is increasing its use of merger review to determine if any of these arrangements violate existing merger rules.
- The CMA has urged AI giants to follow the seven development principles it set out last fall, which include accountability, access, diversity, choice, flexibility, fair dealing, and transparency.