The European Commission, The UK CMA, The U.S. Department of Justice and the U.S. Federal Trade Commission have signed a joint statement to ensure effective competition in the artificial intelligence space, setting out principles to protect consumers. The common principles set out include fair dealing and prevention of exclusionary tactics as well as closer scrutiny of investments and partnerships between incumbents and newcomers.
“As competition authorities for the European Union, the United Kingdom and the United States of America, we share a commitment to the interests of our people and economies,” declared the regulators in a joint statement. “Guided by our respective laws, we will work to ensure effective competition and the fair and honest treatment of consumers and businesses. This is grounded in the knowledge that fair, open, and competitive markets will help unlock the opportunity, growth and innovation that these technologies could provide.”
All participating agencies emphasised their commitment to maintaining fair and competitive markets and using regulatory powers to address potential risks associated with these technologies. While the watchdogs acknowledged that AI has transformative potential, not least in its capacity to drive innovation and economic growth, the rapid development of new models also brings forth new risks that could impact competition. These risks include the possibility of firms restricting key inputs, establishing existing market power, and misusing partnerships and investments. The statement authors also identified specific risks to competition, including concentrated control due to the specialised resources required for AI foundation models, which could allow a few firms to dominate the market and limit innovation.
Another concern for regulators is the potential for large incumbent digital firms to use their existing advantages to protect themselves from AI-driven disruption or extend their market power into AI-related areas. Additionally, partnerships and financial investments between firms may undermine competition if they are used to favour major players, as per the joint statement.
To address these risks, the authorities outlined several principles to protect competition in the AI ecosystem. These included promoting fair dealing to avoid exclusionary tactics, encouraging interoperability of AI products and services to foster competition and innovation. It will also ensure various options for businesses and consumers to prevent undue influence by any single entity. The statement also acknowledges other potential competition risks, such as algorithmic collusion, price discrimination, and unfair practices. Its authors committed to monitoring and addressing these issues as AI technology develops.
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