The U.S. Federal Trade Commission is gathering information from major technology companies regarding their acquisition of technology from other companies concerning artificial intelligence. The FTC press release states:
The Federal Trade Commission announced today that it issued
orders to five companies requiring them to provide information regarding recent
investments and partnerships involving generative AI companies and major cloud
service providers.
The agency’s 6(b) inquiry will scrutinize corporate
partnerships and investments with AI providers to build a better internal
understanding of these relationships and their impact on the competitive
landscape. The compulsory orders were sent to Alphabet, Inc., Amazon.com,
Inc., Anthropic PBC, Microsoft Corp., and OpenAI, Inc.
“History shows that new technologies can create new markets
and healthy competition. As companies race to develop and monetize AI, we must
guard against tactics that foreclose this opportunity, “said FTC Chair Lina M.
Khan. “Our study will shed light on whether investments and partnerships
pursued by dominant companies risk distorting innovation and undermining fair
competition."
The FTC issued its orders under
Section 6(b) of the FTC Act, which authorizes the Commission to conduct studies
that allow enforcers to gain a deeper understanding of market trends and
business practices. Findings stemming from such orders can help inform future
Commission actions.
Companies are deploying a range of strategies in developing
and using AI, including pursuing partnerships and direct investments with AI
developers to get access to key technologies and inputs needed for AI
development. The orders issued today were sent to companies involved in three
separate multi-billion-dollar investments: Microsoft
and OpenAI, Amazon
and Anthropic, and Google
and Anthropic. The FTC’s inquiry will help the agency deepen enforcers
understanding of the investments and partnerships formed between generative AI
developers and cloud service providers.
The FTC is seeking information specifically related to:
- Information regarding a specific investment or
partnership, including agreements and the strategic rationale of an
investment/partnership.
- The practical implications of a specific partnership
or investment, including decisions around new product releases, governance
or oversight rights, and the topic of regular meetings.
- Analysis of the transactions’ competitive impact,
including information related to market share, competition, competitors,
markets, potential for sales growth, or expansion into product or
geographic markets.
- Competition for AI inputs and resources, including
the competitive dynamics regarding key products and services needed for
generative AI.
- Information provided to any other government entity,
including foreign government entities, in connection with any
investigation, request for information, or other inquiry related to these
topics.
The companies will have 45 days from the date they receive
the order to respond.
The Commission voted 3-0 to issue the Section 6(b) orders and
conduct the study of AI investments and partnerships.
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