Antitrust Fears for Big Tech as States Ramp Up Regulations

Major tech companies have spent over $30 billion acquiring artificial intelligence startups while facing mounting antitrust concerns, as states rush to fill the federal regulatory void with nearly 700 AI-related bills introduced in 2024 — an almost 400% increase from 2023.

The flurry of activity includes workplace-focused federal legislation targeting algorithmic bias and employee surveillance, with Colorado becoming the first state to enact comprehensive AI regulations.

Expert: Tech Giants’ AI Shopping Spree Raises Antitrust Red Flags

Major tech companies have spent more than $30 billion acquiring AI startups, prompting concerns about anticompetitive practices in the growing AI sector, according to Notre Dame law professor Roger Alford. Writing in Bloomberg Law, the former Department of Justice antitrust official warned that tech giants are potentially circumventing regulatory scrutiny by classifying acquisitions as “partnerships” or “acqui-hires.”

Amazon, Apple, Google, Meta and Microsoft have collectively absorbed at least 30 AI startups, using their “existing monopolies” in search, social media and voice assistance to integrate AI systems while potentially shutting out competition, Alford wrote. This consolidation threatens both market innovation and national security.

The practice creates barriers for independent startups, which struggle to access essential development resources and distribution channels. With China actively pursuing advanced AI capabilities for military applications, Alford called for stronger antitrust enforcement to foster domestic competition while preventing technology transfer to hostile nations.

“But as Pope Francis recently said, if AI is to serve its proper role, we need ‘a regulatory, economic, and financial environment capable of limiting the monopolizing power of a few and ensuring that innovation benefits the whole of humanity.’” Alford wrote.

AI Bills Surge Nearly 400% as States Race to Regulate

State legislatures saw an unprecedented wave of AI legislation in 2024, with lawmakers introducing almost 700 AI-related bills compared to 191 in 2023, according to an Oct. 22 report from BSA | The Software Alliance. The surge reflects growing state-level action amid federal inaction on AI regulation.

Colorado led the charge, becoming the first state to pass comprehensive legislation targeting high-risk AI uses. Meanwhile, California and Tennessee enacted focused reforms addressing issues like data transparency and digital replicas. Overall, 113 bills were enacted across the country, with 71 specifically targeting deepfake technology.

“Despite a dramatic increase in legislative activity around AI … policymakers have not yet coalesced around a specific model of regulation,” the report said.

Governors also shaped policy through executive orders, with California Gov. Gavin Newsom vetoing legislation that would have regulated large-scale AI models.

With four additional state legislatures set to convene in 2025, the regulatory wave shows no signs of slowing. BSA urged lawmakers to pursue consistent approaches rather than conflicting models.

AI Bill Package Takes Aim at Workplace Automation

Three bills before Congress seek to establish guardrails around AI in the workplace, as lawmakers grapple with concerns about automated employment decisions and worker privacy. The proposed legislation targets issues like algorithmic bias, employee surveillance and AI accountability.

The “No Robot Bosses Act,” introduced by Sen. Bob Casey of Pennsylvania, would prohibit employers from making employment decisions based solely on AI systems without human oversight. A companion bill, the “Stop Spying Bosses Act,” addresses workplace surveillance by requiring transparency around employee monitoring practices.

The “Algorithmic Accountability Act” from Sen. Ron Wyden of Oregon would require companies to assess AI systems for potential discrimination and bias before deploying them for critical employment decisions.

While the bills face uncertain prospects in the current legislative session, they reflect growing momentum for AI regulation at both federal and state levels. In addition to  Colorado becoming the first state to pass comprehensive AI legislation, Illinois now requires employers to notify workers when AI is used in employment decisions.

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