UK’s Antitrust Agency Investigates Partnerships of Top AI Companies
The Competition and Markets Authority (CMA) in the UK has initiated a preliminary investigation into recent partnerships formed by key players in the AI sector, as per an April 24 announcement.
The CMA has requested comments on Microsoft’s tie-up with Mistral AI, Amazon’s collaboration with Anthropic, and Microsoft’s hiring and licensing agreement with Inflection AI.
The antitrust watchdog aims to establish whether the activities of each company “comply with UK merger regulations” and their potential impact on competition. Joel Bamford, Executive Director of Mergers, stated that the CMA will carry out any assessments “objectively and impartially.”
A previous report highlighted a network of over 90 partnerships and strategic investments, some of which may not align with merger regulations.
The current invitations to comment do not signify the start of a formal review. The CMA has not drawn any conclusions and may not necessarily have the authority for further steps.
The deadline for submitting comments is May 9.
Response from Companies
Some of the companies under scrutiny have challenged the CMA’s move citing the nature of their partnerships.
In a statement to CNBC, Amazon labeled the review as “unprecedented” for a partnership of its kind and stressed that its investment in Anthropic is limited — without granting it a board seat or observer role.
Furthermore, Anthropic relies on multiple cloud providers besides Amazon Web Services for its operations.
Anthropic separately stated to CNBC that it operates independently from Amazon and intends to collaborate with the CMA by providing the requested information.
Microsoft informed CNBC that it believes hiring and fractional investments are distinct from mergers and assured that it will furnish the CMA with the necessary information.
Original Partnerships
Amazon sealed a $4 billion deal with Anthropic in March, while Microsoft confirmed a $16 million investment with Mistral in February.
The CMA outlined the computer resource sharing and business aspects of each partnership, mentioning the financial details of the Amazon collaboration.
Microsoft also struck a licensing agreement with Inflection in March, simultaneously recruiting Inflection co-founder Mustafa Suleyman and several other employees. The deal size is estimated at $650 million.
Microsoft has a significant partnership with OpenAI. The CMA initiated a comment period on the partnership in December 2023, which concluded in January without leading to an investigation.
