UK Antitrust Agency Investigates Google’s Partnership with Anthropic
The UK antitrust agency, the Competition and Markets Authority (CMA), has announced that it is investigating Google’s partnership with Anthropic, an American AI rival. The CMA is examining whether this partnership has created a relevant merger situation and if it will lead to a substantial lessening of competition in the United Kingdom. Stakeholders and interested parties are invited to comment on the matter.
Anthropic, established in San Francisco in 2021, focuses on developing artificial intelligence (AI) systems. The company differentiates itself from its competitors by prioritizing safety, transparency, and risk minimization. It operates as a public benefit corporation (PBC) and is known for creating large language models (LLMs) and its chatbot, Claude, which is comparable to Google’s Bard or OpenAI’s ChatGPT.
Google has invested heavily in Anthropic, with a total of $10 billion raised. The initial contribution of $300 million came from Google, followed by an additional $2 billion. Other notable investors include Amazon, which has contributed $4 billion to the AI company.
Regulators are concerned about big tech companies implementing a new strategy of quasi-mergers to gain control over younger innovators without triggering regulatory scrutiny. These quasi-mergers involve tactics such as hiring technical talent and company founders or making strategic investments.
The CMA is not only investigating Google’s partnership with Anthropic but also looking into Microsoft’s investment in Mistral AI, a French startup, and the relationships between Amazon and Anthropic. Additionally, the CMA plans to conduct a thorough probe into Microsoft’s close relationship with OpenAI, the creator of ChatGPT.
Stakeholders and interested parties have the opportunity to provide input to the CMA until August 13, 2024. However, it is uncertain whether the agency will proceed with a formal examination. Google’s involvement in Anthropic may influence the CMA’s decision.
Anthropic has stated that it intends to cooperate with the CMA and provide a comprehensive understanding of Google’s investment and their commercial collaboration. The company emphasizes its independence and assures that its strategic alliances and investor relationships do not compromise its corporate governance independence or its ability to work with other businesses.
Google has expressed its commitment to building an open and innovative AI ecosystem. The company clarifies that its arrangement with Anthropic does not require the exclusive use of Google Cloud, and Anthropic is free to utilize multiple cloud providers.
The investigation by the CMA highlights the growing concerns surrounding the influence and control of big tech companies in the AI industry. Regulators are closely monitoring these partnerships and investments to ensure fair competition and prevent the consolidation of power in the hands of a few dominant players.
