A PYMNTS Company

UK Watchdog Probes Amazon’s Anthropic Partnership Amid Growing AI Regulatory Scrutiny

By  |  August 8, 2024

The U.K.’s Competition and Markets Authority (CMA) has initiated an investigation into Amazon’s recent partnership with AI startup Anthropic, marking the second such probe into collaborations involving the rapidly growing AI firm. This investigation follows closely on the heels of a similar inquiry launched by the CMA into Alphabet’s partnership with the same startup.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    According to Reuters, the CMA announced on Thursday that it has set an initial deadline of October 4 to decide whether to escalate the investigation into a more thorough Phase 2 probe or to clear the partnership of any potential competition concerns. This is part of a broader effort by the CMA to ensure that alliances between tech giants and emerging AI companies do not harm competition in the rapidly evolving AI sector.

    In response to the investigation, an Amazon spokesperson stated via email that the company believes its collaboration with Anthropic does not present any competition issues. “Amazon holds no board seat nor decision-making power at Anthropic, and Anthropic is free to work with any other provider (and indeed has multiple partners),” the spokesperson emphasized. This sentiment was echoed by Anthropic, whose spokesperson affirmed the startup’s independence in its strategic partnerships and commitment to maintaining its corporate governance autonomy.

    Read more: Amazon Denies Monopolistic Threat in Mexico Amid Regulatory Scrutiny

    Anthropic, a company founded by former OpenAI executives Dario and Daniela Amodei, has been attracting significant attention from major tech companies, leading to increased regulatory scrutiny. The CMA’s recent investigations into Amazon and Alphabet’s partnerships with Anthropic reflect growing global concerns among regulators about the potential competitive risks posed by collaborations between powerful tech firms and smaller, innovative startups.

    As noted by Reuters, antitrust authorities across the United States, European Union, and the U.K. have recently pledged to work together more closely to preserve fair competition in the industry. This collaborative approach among regulators highlights the escalating focus on ensuring that the rise of AI technologies does not lead to market monopolization or stifling of competition.

    Both Amazon and Anthropic have expressed their intention to cooperate fully with the CMA, with the latter stating its commitment to providing a detailed explanation of its relationship with Amazon.

    Source: Reuters