The UK’s Competition and Markets Authority (CMA), led by Sarah Cardell, has voiced its displeasure with the control of AI Foundation Models (FMs) by a small number of tech companies. This concern was outlined in a paper presented by the CEO during an Antitrust Law Spring Meeting in Washington on April 11.
UK Competition and Markets Authority Concerned over Potential Market Exploitation
Cardell, head of the regulatory body, has expressed concern that Big Tech investments in the artificial intelligence sector could stifle competition.
“The essential challenge we face is how to harness this immensely exciting technology for the benefit of all, while safeguarding against potential exploitation of market power and unintended consequences. We’re committed to applying the principles we have developed, and to using all legal powers at our disposal – now and in the future – to ensure that this transformational and structurally critical technology delivers on its promise,” Cardell explained.
According to the CMA boss, there’s an “interconnected web of over 90 partnerships and strategic investments involving the same firms: Google, Apple, Microsoft, Meta, Amazon, and Nvidia (the leading supplier of AI accelerator chips).”
We’ve outlined our growing concerns in the #AI #foundationmodels market, including 3 key interlinked risks to fair, open and effective competition.
Read more about these, as well as our plans for further action, here: https://t.co/pP2larduqN pic.twitter.com/YeShd28aUH
— Competition & Markets Authority (@CMAgovUK) April 11, 2024
Concerns exist regarding the impact of these investments on customer choice and healthy competition within the rapidly growing AI sector.
The CMA chief outlines three specific dangers:
Control over inputs: Big Tech could gain control of essential AI inputs like data and specialized chips.
Limiting choice: Companies could leverage existing market power to limit user options for AI services.
Anti-competitive alliances: These tech giants could form partnerships explicitly to concentrate market power and hinder innovation.
Big Tech Firms Invest Massively In Artificial Intelligence
Companies like Microsoft, Amazon, and Google have invested billions in AI development, hiring top talent and building products for vast user bases.
Microsoft’s backing of OpenAI (the creators of GPT-4) is a prime example. These investments, while fueling progress, also solidify their positions as gatekeepers within the industry.
The CMA recognizes the potential benefits of AI and the vast expertise these corporations possess. However, Cardell worries that smaller companies could be squeezed out if the current trend continues.
EU Launches Probe into Tech Giants Over Digital Markets Act Violations
The European Commission began an extensive investigation targeted at Apple, Amazon, Alphabet, and Meta over non-compliance practices under the new Digital Markets Act (DMA).#newshttps://t.co/qECt1urPHv
— Cryptonews.com (@cryptonews) March 26, 2024
The CMA’s stance echoes growing regulatory sentiment in the US and Europe as authorities grapple with Big Tech’s increasingly dominant role. Legal actions targeting anti-competitive practices suggest that scrutiny of these tech titans is only intensifying.
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