Margrethe Vestager, the European Union’s antitrust chief and digital EVP, has issued a stern warning to tech giants like Microsoft, Google, and Meta, emphasizing the need for heightened attention to the impact of artificial intelligence (AI) in the context of merger control policies.
Speaking during a seminar on preventing the monopolization of AI by major tech companies, Vestager signaled a more rigorous assessment of tech mergers and partnerships in light of the expanding influence of “wide-reaching” digital markets.
Vestager underscored the importance of considering vertical integration and ecosystems when assessing mergers, urging enforcers to be mindful of the potential economic effects of AI. She specifically mentioned the need to examine how AI might lead to new forms of algorithmic collusion, indicating a broader scope for future regulatory scrutiny.
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The EU’s recent commitment to scrutinize Microsoft’s investment in generative AI giant OpenAI aligns with Vestager’s statements. The antitrust chief hinted at a more active role in evaluating tech mergers and partnerships, expressing concerns about barriers to entry in the development of cutting-edge AI. Vestager highlighted the challenges faced by European AI startups in competing with US hyperscalers, particularly regarding access to key AI infrastructure.
While Vestager did not present concrete plans to level the playing field for European AI startups, her address hinted at the EU’s intention to become more comprehensive in scrutinizing tech deals.
She suggested that existing competition tools, including the upcoming Digital Markets Act (DMA), would be utilized to shape the development of the AI market. The DMA is set to apply to major tech companies, such as Microsoft, Google, and Meta, starting early next month.
The seminar discussions raised concerns over the uncertainties surrounding access to essential AI inputs, prompting discussions on potential solutions. European AI startups, including Aleph Alpha, emphasized the need for independence by investing in building and training their foundational models. Vestager acknowledged the challenges posed by AI development, including issues related to intellectual property, ethical deployment, and potential societal harms.
Despite the call for more intelligent merger scrutiny, Vestager’s speech raised questions without providing definitive solutions. The discussion also touched on proposals for structural changes, such as breaking off cloud services and turning them into utilities. However, Microsoft’s director of competition argued against immediate structural separation, emphasizing the importance of investments in cloud and infrastructure for driving innovation.
The panel highlighted the difficulties faced by competition authorities in addressing tech partnerships effectively, with Vestager encouraging collaborative efforts among international enforcers, regulators, and policymakers. The ongoing proceedings regarding Microsoft and OpenAI’s partnership exemplify the challenges faced by regulators in adapting to the evolving landscape of AI and tech mergers.