The regulator recognizes the potential advantages of digital alliances but cautions against dominant ones since they may undermine competition in the AI market. Big Tech’s growing hegemony in the advanced artificial intelligence (AI) space worries the Competition and Markets Authority (CMA) in the UK, whose CEO, Sarah Cardell, expressed “real concerns” about the sector’s growth.
The CMA noted in a report on fundamental AI market models published on April 11 that the rise in generative AI tools is being driven by the growing concentration and interconnectedness of developers in the cutting-edge tech industry. The CMA’s research emphasizes how Google, Amazon, Microsoft, Meta, and Apple—collectively known as GAMMA—consistently participate in different facets of the AI value chain.
New Competition In The AI Market?
The regulator warned against the dangers presented by dominating partnerships and integrated enterprises, which may erode competition in open AI markets, even as it acknowledged the potential advantages of partnership arrangements in the digital ecosystem. “We are concerned that the foundational model (FM) sector is developing in ways that risk negative market outcomes,” stated the CMA, referring to a type of artificial intelligence that makes use of vast amounts of data and computer power and may serve as the basis for a variety of applications. To ensure fair competition, the study identifies three interconnected risks: companies that hold essential inputs needed to construct general-purpose AI market models; tech giants that use their dominance to influence decisions about GenAI services; and collaborations that might strengthen market power along the value chain.
