Subj : Competition under threat as cloud giants selectively invest in st
To   : All
From : TechnologyDaily
Date : Fri Apr 12 2024 10:45:05

Competition under threat as cloud giants selectively invest in startups, 
watchdog says

Date:
Fri, 12 Apr 2024 09:31:56 +0000

Description:
Dominating cloud companies are getting even more attention from the CMA, this 
time in the terms of artificial intelligence.

FULL STORY
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In a recent address at the 72nd Antitrust Law Spring Meeting in Washington 
DC, UK Competition and Markets Authority (CMA) CEO Sarah Cardell delved into 
the potential impact of the current AI landscape on competition and consumer 
protection. 

Emphasizing AI's transformative benefits, Cardell implied that tech giants 
like Amazon, Google, and Microsoft have been selectively investing in 
specific startups. 

Her speech, recorded via speakers notes , highlighted the need for proactive 
measures to ensure fair, open, and effective competition in the AI landscape. 
Cloud companies are the subject of CMA scrutiny yet again 

Reflecting on the CMAs ongoing scrutiny of the cloud and AI industry, Cardell 
outlined a series of risks that current practices pose. 

Concerns were raised about tech giants controlling critical inputs (such as 
compute and data) for foundation model development, potentially restricting 
access for other companies. Such restriction could lead to incumbent firms 
protecting their existing positions from disruption, which Cardell fears 
might even lead to market power in other markets beyond AI. 

The CMAs CEO also noted that partnerships involving key players in the AI 
landscape, such as the big three, could reinforce their existing positions of 
market power and dominance, making it even harder for smaller companies to 
reach the top. 

To address these concerns, the CMA has already committed to enhancing its 
merger review process to assess the implications of partnerships and 
arrangements and to monitor current and emerging partnerships more closely, 
including that of Microsoft and OpenAI. 

Finally, the CMA has plans to examine AI accelerator chips and their impact 
on the foundation model value chain. 

As the AI landscape continues to evolve, its clear that the CMA remains 
committed to its existing investigations into dominant companies and 
encouraging competition. More from TechRadar Pro Amazon and Microsoft facing 
antitrust probe over cloud computing dominance These are the best AI tools 
and best AI writers Check out the best cloud hosting providers



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Link to news story:
https://www.techradar.com/pro/competition-under-threat-as-cloud-giants-selecti
vely-invest-in-startups-watchdog-says


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