UK regulator looks at Google’s partnership with Anthropic
- The UK's Competition and Markets Authority (CMA) is examining Google's partnership with AI startup Anthropic.
- The investigation will determine if the collaboration could be classified as a merger.
- If deemed a merger, it may trigger a more extensive investigation into the implications for market competition.
The Competition and Markets Authority (CMA) has initiated a preliminary investigation into the partnership between Google and AI startup Anthropic, following Google's $2 billion investment in the company in 2023. This inquiry is part of a broader scrutiny of collaborations between major tech firms and smaller AI entities, as regulators assess whether such partnerships could create a "relevant merger situation" warranting a formal investigation. The CMA is currently inviting public comments for the next two weeks. Concerns regarding competition in the generative AI sector have prompted the CMA to investigate other significant deals, including Amazon's $4 billion stake in Anthropic, which also involves a cloud computing agreement. Similar inquiries have been launched into Microsoft's investments in OpenAI and the AI startup Inflection, as well as a previous investigation into Microsoft’s deal with French AI startup Mistral, which was ultimately dropped in May. Regulators are increasingly wary of the concentration of power among large tech companies, leading to a cautious approach towards outright acquisitions in competitive sectors like AI. The CMA is particularly focused on arrangements that could potentially stifle competition, even if they do not constitute traditional mergers. In response to the investigation, Anthropic has asserted its independence, stating that its partnerships do not compromise its corporate governance or ability to collaborate with other entities. Google echoed this sentiment, emphasizing its commitment to fostering an open and innovative AI ecosystem.