EU, UK, and U.S. Authorities Issue Joint Statement on AI Competition

On July 23, 2024, competition authorities from the EU, UK, and U.S. issued a Joint Statement addressing competition in generative AI foundation models and products. This collaboration signals a unified global approach to scrutinize AI’s competitive impacts. Each authority has been individually ramping up efforts to understand potential risks AI poses to competition.

The UK Competition and Markets Authority (CMA) published an initial report on AI foundation models in September 2023, with an update in April 2024. The next phase will focus on AI accelerator chips, with further updates expected in autumn 2024. The European Commission (EC) launched calls for contributions on competition in virtual worlds and generative AI in January 2024, followed by a workshop in June 2024. Key players have been requested to provide information as the EC continues gathering data on AI industry dynamics.

In the U.S., legislative bodies have held over 75 AI-focused hearings in the past five years. A new bipartisan task force on AI was announced in February 2024. The Joint Statement by the EC, CMA, U.S. Federal Trade Commission (FTC), and U.S. Department of Justice (DOJ) emphasizes sharing understandings of key issues and using their powers to address competitive threats. Authorities aim to avoid past regulatory mistakes by equipping themselves with new tools to regulate digital markets and AI.

The Joint Statement identifies risks such as concentrated control of key inputs, market power entrenchment, and partnerships among AI firms. Authorities endorse principles of fair dealing, interoperability, and choice to mitigate risks and foster innovation. They also highlight the potential for algorithms to facilitate collusion or unfair practices. Companies must understand AI use in their supply chains and implement safeguards to prevent unintentional exchanges of competitively sensitive information.