The UK's Competition and Markets Authority (CMA) has initiated a formal antitrust investigation into Amazon's $4 billion investment in AI startup Anthropic. This continues the increasing regulatory scrutiny of Big Tech's growing influence in the AI sector.
The CMA announced it has "sufficient information" to begin a Phase 1 investigation, setting an October 4 deadline to decide whether to clear the deal or pursue a more in-depth Phase 2 probe. This follows the regulator's recent examination of Google's ties with Anthropic and Microsoft's investments in OpenAI and Inflection AI.
Amazon's partnership with Anthropic doesn't grant the e-commerce giant a majority stake or board representation. However, it raises concerns about potential anti-competitive effects in the rapidly evolving AI landscape.
Anthropic, founded in 2021 by former OpenAI employees, has positioned itself as a key player in AI development, creating large language models and the chatbot Claude. The startup has attracted significant investment, with Google also holding a stake in the company.
The CMA's investigation reflects growing unease about Big Tech's strategy of strategic investments and talent acquisitions in AI, which some view as a way to sidestep the regulatory scrutiny that would come with outright acquisitions.
Both Amazon and Anthropic have expressed disappointment with the investigation. Amazon claims that the collaboration "does not raise any competition concerns or meet the CMA's own threshold for review." Anthropic maintains its independence, emphasizing that its partnerships don't compromise its governance or ability to work with other companies.
This probe is part of a broader trend of increased regulatory attention on AI partnerships. The US Federal Trade Commission is also examining Amazon's investment in Anthropic, along with similar deals involving Google and Microsoft.
As the AI industry continues to evolve rapidly, regulators worldwide are struggling with how to ensure fair competition and prevent market concentration in this critical emerging technology sector.