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CMA survey on Alphabet: Focus on investments in Anthropic
The Competition and Markets Authority examines the competitive implications of the financial support of the technological giant at the startups of AI
Isabella V25 October 2024

 

The United Kingdom Competition and Markets Authority (CMA) has launched a formal survey on the investment of Alphabet in Anthropic, a move that reflects the growing concern for competition in the AI ​​sector. The CMA explores the possible effects of the agreement on market competitiveness.

Key points:

  • The CMA investigation concerns the 2.3 billion dollars in Anthropic’s Alphabet investment.
  • This is part of a wider approach to face the "quasi-fusions" in the technological sector.
  • The CMA has already examined Amazon’s investment in Anthropic, without starting an investigation.
  • Anthropic said he maintains his independence despite strategic partnerships.

The Competition and Markets Authority (CMA) of the United Kingdom has recently taken a formal investigation regarding the significant investment made by Alphabet in Anthropic, an emerging startup in the AI ​​sector. This decision comes after a period of consultation, during which the CMA had invited the parties interested in providing feedback on the various investments of Alphabet, including an initial commitment of 300 million dollars at the beginning of last year, followed by an additional 2 billion dollars. The investigation represents a component of a wider strategy of the CMA to deal with the phenomenon of quasi-fusions, an approach increasingly adopted by large technological companies to acquire control over innovative startups, through strategic investments and targeted hires of talents and founders. While Anthropic, a young reality from San Francisco with three years of life, also attracted other weight investors such as Amazon, who injected 4 billion dollars in the startup, the CMA had already examined the agreement with Amazon without starting an investigation, due to the scope and size of the agreement itself. The CMA decision to start an investigation into the investment of Alphabet suggests that there may be substantial differences in the terms of the two agreements, or that the Alphabet investment may present potential risks for competition that would not emerge from the agreement with Amazon. A Google spokesman said Anthropic has the freedom to make use of cloud suppliers and that Alphabet does not demand exclusive rights on technology. In addition, the CMA has expressed adequate information to justify the opening of a preliminary investigation, before deciding whether the case should be forwarded to a more in -depth investigation phase, the outcome of which is expected by December 19, 2024. In response to these dynamics, Anthropic has confirmed his will to collaborate with CMA, underlining his independence and stating that strategic relations do not compromise corporate governance or freedom to collaborate with other market actors.

Ultimately, the future of competition in the AI ​​sector is at the center of a careful regulatory examination.