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The concerns follow an initial report on AI Foundation Models published in September last year
The UK’s competition regulator, the Competition and Markets Authority (CMA), has expressed concerns over the growing power of big tech companies in the AI Foundation Models (FMs) market.
Speaking at a conference in Washington DC last week, the CMA’s CEO Sarah Cardell explained that the concentration of power amongst Google, Apple, Microsoft, Meta, Amazon, and Nvidia gives them “the ability and incentives to shape these markets in their own interests”.
These companies not only dominate in the development of foundation models, but also in their deployment to consumers, through apps for example.
Highlighting the swift evolution of this sector, Cardell warned of three key risks that pose significant challenges to fair and open competition:
- Companies controlling critical inputs for developing FMs may restrict access to shield themselves from competition
- Powerful incumbents could exploit their positions in consumer or business facing markets to distort choice in FM services and restrict competition in deployment
- Partnerships involving key players could exacerbate existing positions of market power through the value chain
The speech’s accompanying update paper highlights a growing “interconnected web” of over 90 partnerships and strategic investments between the aforementioned six companies. These partnerships reinforce existing concentrations of market power, and stifle competition and innovation of rivals in the process. Therefore, the CMA is “keeping very close watch on current and emerging partnerships,” said Cardell.
Although acknowledging that these companies have an important role in the development of the AI market, through their resources and expertise, the paper notes the importance of avoiding an “over-dependence” on them.
Set to be published this week, the CMA will release a detailed technical report on FMs, accompanied by finalised principles to guide regulatory action.
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