Leading competition authorities from the European Union, the United Kingdom, and the United States have jointly released a comprehensive statement addressing the rapidly evolving landscape of generative artificial intelligence (AI). This collaborative effort underscores the shared commitment of the European Commission, the UK’s Competition and Markets Authority (CMA), the U.S. Department of Justice (DOJ), and the Federal Trade Commission (FTC) to ensure fair competition and protect consumers in the burgeoning AI market.
The joint statement, signed by key figures such as Margrethe Vestager, Executive Vice-President and Competition Commissioner of the European Commission; Sarah Cardell, CEO of the CMA; Jonathan Kanter, Assistant Attorney General of the DOJ; and Lina M. Khan, Chair of the FTC, highlights the necessity of fair, open, and competitive markets. The authorities emphasized that while their decisions will remain sovereign and independent, the global nature of AI developments necessitates a coordinated approach to manage potential risks effectively.
The statement acknowledges the transformative potential of AI, particularly generative AI, which has rapidly advanced and could significantly impact various sectors. These technologies, capable of generating complex text, computer code, and realistic images and audio, are seen as one of the most significant technological developments in recent decades. The competition authorities stress the importance of harnessing this potential for innovation and economic growth while safeguarding against practices that could undermine fair competition.
The regulators identified several key risks that require ongoing vigilance to maintain a competitive AI landscape. One significant concern is the concentrated control of key inputs. Developing foundation models necessitates specialized chips, substantial computing power, large-scale data, and technical expertise. The potential for a few companies to monopolize these critical resources could stifle disruptive innovation. Such concentration could allow these firms to shape AI development to their advantage, limiting opportunities for competitors.
Another major risk is the entrenchment of market power. Large digital firms that already possess significant market power could leverage AI to extend their dominance across AI-related markets. This entrenchment could prevent new entrants from establishing a foothold, ultimately harming consumers and the broader economy. By consolidating their control, these firms might protect against AI-driven disruption and harness AI advancements to maintain their market positions, thereby stifling competition.
Amplifying risks through partnerships also poses a threat. While partnerships and investments in AI can foster innovation, they can also enable major firms to undermine competitive threats. If not carefully monitored, these collaborations could be used to steer market outcomes in favor of dominant players. The authorities are committed to scrutinizing such arrangements to ensure they do not negatively impact market competition and perpetuate existing power imbalances.
The statement outlines several principles to guide competition in the AI ecosystem. One fundamental principle is fair dealing. Firms with market power must avoid exclusionary tactics that can undermine competition. Ensuring fair practices will encourage investment and innovation from third parties, fostering a more dynamic and competitive market environment. Interoperability is another crucial principle. AI products and services should be designed to interoperate, enhancing competition and innovation. The authorities will closely examine claims that interoperability compromises privacy and security, ensuring that these arguments are not used to hinder competition.
Lastly, the principle of choice is emphasized. Consumers and businesses should have diverse options in the AI marketplace. The regulators will scrutinize mechanisms of lock-in and partnerships that could restrict competition, ensuring that companies or individuals can meaningfully choose from a range of alternatives. This scrutiny extends to investments and partnerships between incumbents and newcomers, preventing incumbents from gaining undue influence or control that undermines competition.
Beyond competition, the regulators are mindful of other risks associated with AI, such as the potential for algorithms to facilitate collusion, price-fixing, or unfair price discrimination. The CMA, DOJ, and FTC, with their consumer protection mandates, will monitor and address any consumer protection threats arising from AI applications. The joint statement concludes with a commitment to continuous monitoring and action against specific risks associated with generative AI and other AI developments. The collaboration between these regulatory bodies aims to ensure that the public reaps the full benefits of AI technologies while mitigating potential harms.
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