Regulatory update: Multilateral statement sets out principles for protecting competition in the AI ecosystem

Recently, the Competition and Markets Authority, the European Commission, the US Department of Justice, and the US Federal Trade Commission issued a joint statement on competition in generative AI foundation models and AI products.

The statement underscores a shared commitment to ensuring that the AI industry operates within a framework promoting fair competition, innovation, and consumer protection.

Ensuring competitive global markets

The statement acknowledges the immense potential of AI foundation models to benefit society, drive economic growth, and enabling innovation. However, it also outlines several risks the signatories see associated with this rapidly evolving technology:

To address these risks and support competition in the AI ecosystem, the regulators propose several principles.

First, companies should engage in fair dealing practices, avoiding tactics that exclude competitors and stifle innovation. Promoting interoperability between AI products and services, while safeguarding privacy and security, is also essential to encourage competition and prevent market dominance. Finally, ensuring a diverse range of choices for businesses and consumers is vital. This involves scrutinising practices that create barriers to entry or limit options, including mergers, partnerships, and other arrangements between established and emerging companies. The statement also notes the importance of clearly informing consumers about when and how AI is used in the products or services they purchase.

Next steps

The joint statement provides greater information to businesses about the potential competition risks the UK’s, EU’s and US’s competition authorities see in the market for generative AI foundation models and AI products, as well as setting out their intended strategies to mitigate these risks. As the AI landscape rapidly evolves, it is crucial to strike a balance between encouraging innovation and implementing proportionate regulations to ensure AI's benefits are realised for the UK digital economy and society.

Achieving this will require ongoing collaboration and cooperation between the industry and the regulators, which techUK is committed to supporting. As part of our regulatory engagement, we have reached out to the CMA to understand more.

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