by István Kopácsi
As artificial intelligence (AI) continues to advance at a breakneck pace, ensuring that its development and deployment adhere to principles of fair competition is more critical than ever. A recent joint statement[1] from competition authorities in the European Union, the United Kingdom, and the United States sheds light on their collaborative approach to managing competition concerns in the rapidly evolving field of generative AI.
Generative AI, encompassing technologies that can create new content, designs, and solutions, has the potential to drive unprecedented innovation and economic growth. However, this transformative power also brings to the forefront several competition-related issues that need vigilant oversight. The authorities recognize that while these technologies could significantly benefit consumers and businesses, they also pose risks that could undermine fair market dynamics.
One primary concern is the possibility of restricted access to essential inputs. As generative AI relies on vast amounts of data and specialized resources, there is a risk that firms might control or limit access to these critical components. Such restrictions could stifle innovation by making it difficult for new entrants to compete or develop competing technologies. Ensuring open access to necessary resources is essential for maintaining a vibrant and competitive AI ecosystem.
Another issue is the potential for firms to extend their existing market power into new AI markets. Companies that already hold significant power in digital sectors might leverage their dominance to reinforce or expand their control in AI-related markets.
The joint statement highlights the importance of fair dealing, where firms avoid exclusionary practices that stifle competition and innovation. Interoperability is crucial, allowing AI products and services to work together seamlessly, with privacy and security concerns carefully evaluated. The principle of choice ensures that businesses and consumers have diverse options, preventing lock-in mechanisms and scrutinizing partnerships that might undermine competition. Additionally, it underscores the need for content creators to have multiple buyers to avoid monopsony power that restricts the free flow of information.
The signatory authorities are committed to closely monitoring other potential risks posed by advances in AI technology, such as algorithms that allow competitors to share sensitive information, fix prices or collude in breach of competition laws, and there are also concerns about algorithms that promote unfair price discrimination or exclusionary practices.
Lastly, the authorities are vigilant about the potential harm to consumers and market participants. Generative AI, if misused or developed irresponsibly, could have negative consequences for consumers, entrepreneurs, and other market players. This includes risks of privacy violations, biased outcomes, and other adverse effects. The commitment to using available powers to mitigate these risks underscores the need for responsible AI development and deployment.
The joint statement reflects a unified approach to these challenges, emphasizing the importance of international cooperation. Although the legal frameworks and jurisdictions of the EU, UK, and US differ, the authorities recognize that the global nature of AI issues requires a coordinated effort. By sharing insights and aligning their actions, they aim to prevent competition concerns from becoming entrenched and ensure that generative AI benefits the public and the market as a whole.
[1] https://competition-policy.ec.europa.eu/document/download/79948846-4605-4c3a-94a6-044e344acc33_en?filename=20240723_competition_in_generative_AI_joint_statement_COMP-CMA-DOJ-FTC.pdf
