Antitrust regulators on both sides of the Atlantic are striving to address the challenges posed by AI, as highlighted during a recent conference in Brussels. Leading U.S. competition law officials emphasized the need for "extraordinary vigilance" and a clear understanding of market dynamics to effectively navigate this complex landscape. On the European front, there is evident hesitation regarding how to tackle the rise of generative AI, which raises concerns that the newly established ex ante regulations for digital gatekeepers may fail to keep pace with rapidly evolving technology.
The event, titled "Antitrust, Regulation and the New World Order," featured prominent competition enforcers from both the U.S. and the European Union, including FTC Chair Lina Khan, DOJ Assistant Attorney General Jonathan Kanter, Olivier Guersent, the EU's competition division’s director general, and Roberto Viola, who leads the bloc's digital division responsible for implementing the Digital Markets Act (DMA) starting next month. While conversations varied across topics, a significant portion focused on the increasing dominance of Big Tech, big data, and AI, and the implications for market competition.
U.S. Enforcers Target AI
FTC Commissioner Rebecca Slaughter warned that once markets consolidate, taking corrective action becomes extremely challenging. “We need to adopt a forward-thinking approach to ensure markets are constructed competitively from the outset, rather than simply responding to issues after they arise,” she stated. This shift towards proactive regulation is particularly timely as the FTC has seen significant conversation about AI recently.
Through a video link, Khan echoed this sentiment, highlighting that the rapid adoption of AI tools presents a pivotal opportunity for regulators to apply lessons learned from the fast-paced developments of the Web 2.0 era. “Two decades later, we are still dealing with the consequences of allowing unchecked practices to solidify,” she cautioned. “We’re committed to learning from our past, exemplified by the ongoing FTC case against Meta for allegedly unlawful acquisitions.”
According to Kanter, the DOJ’s antitrust division is actively investigating numerous AI-related competition matters and is ready to intervene when legal violations are detected. “Our mission is to enforce the law in this critical area. To achieve that, we need to demystify AI and understand it at a granular level—from chip manufacturing to end-user applications,” he explained.
Kanter also emphasized the DOJ’s investment in technological expertise to ensure a thorough understanding of AI complexities, noting the potential for monopolistic practices across various aspects of the AI ecosystem, including chips, datasets, algorithms, and distribution platforms. “The stakes are high, and we must get ahead of these issues now to preserve competition in the market,” he asserted.
Khan elaborated on the FTC’s efforts to tackle AI through building an in-house technology team that enables a detailed analysis of the entire AI supply chain. By dissecting layers from chips and computing to foundational models and applications, the agency aims to uncover economic challenges and potential causes of bottlenecks.
“There’s immense opportunity here to drive growth and innovation, but these pivotal moments can either facilitate market accessibility or reinforce monopolistic practices,” she stated. “We are committed to a comprehensive examination of the AI landscape.”
Highlighting the FTC’s recent 6(b) inquiry focused on generative AI and investment dynamics, Khan noted its purpose is to identify exclusive implications that may permit dominant actors to monopolize competitive business strategies. Additionally, she stressed their commitment to consumer protection and privacy in an environment that constantly gathers and utilizes personal data.
“We aim to ensure that the relentless pursuit of data for model enhancement does not lead to widespread privacy violations or unnecessary surveillance of citizens,” Khan noted.
Shifts in Europe’s Approach to Big Tech
European enforcers at the conference faced inquiries about evolving sentiments regarding Big Tech mergers and acquisitions (M&A), referencing Amazon's recent withdrawal from its iRobot acquisition due to opposition from the European Commission. Caffarra questioned whether this reflects a significant shift in the EU's M&A stance regarding Big Tech.
Guersent acknowledged that regional regulators have become increasingly wary of such mergers. “This was a signal we’ve been receiving for some time. Various high-profile tech acquisitions have raised alarms,” he replied, echoing sentiments shared in past decisions regarding other notable mergers.
He expressed uncertainty about the outcome of Amazon's iRobot deal but suggested that the evidence was strong enough to cause Amazon to abandon the acquisition rather than face a potential negative ruling that could invite legal challenges.
As regulators navigate the landscape of digital services and artificial intelligence, there remains a clear need for collaborative discussions and knowledge-sharing among national competition authorities. Guersent noted that tackling the complexities of AI should involve a broader team approach, emphasizing collaboration across the European Competition Network (ECN).
Benoit Coeure, from France's competition authority, warned of the dangers of strategic indecision regarding AI regulation. He urged the Commission to make critical choices about the scope and enforcement of the DMA to ensure effective oversight of Big Tech's evolving capabilities in the AI sector.
In summary, as AI continues to reshape markets globally, both U.S. and European regulators are confronting the challenge with a renewed focus on proactive oversight. With significant competition implications tied to AI developments, the call for collaborative, informed regulation stands as critical to fostering fair marketplaces and encouraging innovation.
Ranking
