France’s Competition Watchdog Scrutinizes AI Tech Giants

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    France's competition authority has launched a public consultation on the field of AI to investigate potential dominance by big tech companies.

    Authorities are trying to understand the strategies that big tech companies have implemented, including the investments they have made within the sector, such as Microsoft's investments in AI startups like OpenAI.

    Tech giants such as Microsoft, Amazon, and Alphabet will come under increased scrutiny.

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    unfair competition

    of Movement of competition monitors was born on the back of rapidly growing generative AI technology around the world since the launch of OpenAI's ChatGPT in November 2022, and achieved immediate success.

    For this reason, watchdogs are focusing on big tech companies such as Microsoft, Amazon, and Amazon that have “cloud infrastructure hubs” and the risk of using their influence to unfairly expand their control over AI.

    There are also concerns that big tech companies will prevent new entrants into the AI ​​field, creating unhealthy competition. As a result, competition authorities are also scrutinizing large companies' investments in AI startups.

    One example is that Microsoft is “backing OpenAI's ChatGPT, but questions have been raised about the impact these partnerships will have on market trends.”

    according to wall street nowThe involvement of large tech companies in investing in AI startups, such as France's Mistral AI SAS, could signal an environment in which new entrants will find it difficult to survive and compete with industry giants. There is. These big technologies can significantly hinder small and medium-sized businesses from entering the cutthroat sector.

    AI boom and regulation

    The AI ​​sector is expected to continue growing to approximately $1 trillion by 2030. Statista. But with this growth, there are concerns that without clear regulation and oversight, existing big tech companies will use their “power” to extend their dominance and power into the AI ​​space.

    But this comes as antitrust authorities are also calling for an “aggressive stance against potential anticompetitive conduct.”

    The call also comes as the EU finalizes its AI law, the Digital Services Act (DSA), which will drive regulation in this area. One of its main objectives is to ensure that harmful activities and the spread of misinformation online are prevented.

    According to the EU, the DSA, together with the Digital Markets Act (DMA), primarily aims to create a safer digital space for users and establish a level playing field that fosters competitiveness, growth and innovation. It is said to form a set of rules that apply throughout. .

    global concern

    The French competition watchdog's concerns come just a month after the Federal Trade Commission (FTC) also launched an investigation into the tech giant's multibillion-dollar investments in AI startups.

    Companies like Microsoft and Amazon have come under intense scrutiny over their investments in startups like Anthropic and OpenAI. The FTC and France's competition authorities have similar concerns about “the lock-in power that big tech companies can have over AI.”

    Google and Amazon have poured billions of dollars into Anthropic, but so has OpenAI. microsoft.

    According to the New York Times, these deals have allowed big tech companies to forge strong relationships with smaller competitors while avoiding government oversight. The FTC's investigation will examine how these huge transactions took place. influence competition within the sector.


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