On 23 July 2024, leaders of the European Commission’s Competition Directorate General (DG COMP), the UK’s Competition and Markets Authority (CMA), the US Department of Justice (DoJ) and the US Federal Trade Commission (FTC) published a statement which, whilst not binding, signals agreement to future cooperation when addressing risks of generative AI foundation models and AI products ‘in the interests of fair, open, and competitive markets.’
ARTICLE 19 welcomes this statement. Promoting open, fair, decentralised and diverse digital markets is a core theme of our work in the EU and globally. Addressing the concentration of power that distorts the information environment is one of our key asks of the incoming European Commission and we recognise that it can only be partially addressed through the effective implementation of the Digital Markets Act (DMA). This joint statement from the EU, CMA, FTC and DOJ is an important transatlantic acknowledgement by leading regulatory agencies that this concentration of power must not be allowed to emerge in the generative AI space.
With political transition underway in Brussels and shortly in the US, it remains to be seen whether this statement leads to any concrete joint actions. Nevertheless, we are encouraged by the agencies’ commitment to ‘using available powers to address any such risks before they become entrenched or irreversible harms.’
We also welcome the focus on fair dealing, interoperability and choice, as outlined in the statement’s ‘Principles for protecting competition in the AI ecosystem’.
ARTICLE 19 consultant and competition expert Dr Simonetta Vezzoso commented:
There is a clear risk that a few companies controlling essential resources in AI development could dominate the industry, stifle innovation and fair competition, and shape the market to their advantage. This must be prevented before it’s too late.
The regulators need to act quickly and should be encouraged to collaborate, sharing and discussing insights from their independent enforcement experiences. The statement is an important step in the right direction.
What’s particularly encouraging is that the four competition authorities have acknowledged and emphasised the pivotal role interoperability is likely to play in enhancing competition and innovation in the AI ecosystem, while committing to closely scrutinising any claims that interoperable systems require compromises on privacy and security.
It is significant that great care has been taken in the joint statement to explicitly define what the principle of choice means within the AI ecosystem. It is also reassuring to see the attention given to addressing the exercise of monopsony power, which can harm the free flow of information in the marketplace of ideas.
These types of statements from leading competition authorities are crucial for their ability to resonate at the level of global antitrust enforcement. We hope this is the beginning of a productive collaboration which has the potential to ensure an open and fair AI ecosystem.