The UK’s antitrust authority has recently determined that Amazon’s collaboration and investment in AI startup, Anthropic, cannot be investigated under current merger rules due to the scale and nature of the transaction.
The UK Competition and Markets Authority (CMA) made this decision following Amazon’s $4 billion investment in Anthropic, an AI startup known for developing large language models and a chatbot named Claude. Anthropic, based in San Francisco, operates as a public benefit corporation and has received significant funding, including investments from Google.
The CMA’s focus was on assessing whether Amazon would have substantial influence over Anthropic, a concern that arises in the tech industry where major players tend to exert control over startups through strategic partnerships and investments, rather than outright acquisitions.
Despite the concerns, the CMA stated that the Enterprise Act 2002 criteria were not met for a formal investigation, as Anthropic’s UK turnover did not meet the threshold for scrutiny. This decision indicates that Amazon’s investment in Anthropic does not constitute a “relevant merger situation” according to UK competition regulations.
Anthropic emphasized its independence and corporate governance autonomy, stating that its partnerships and investments do not compromise its freedom to collaborate with other entities.
The CMA has initiated similar probes in recent times, including one involving Microsoft’s acquisition of Inflection and stake in Mistral AI. Additionally, a separate investigation into Microsoft’s relationship with OpenAI is ongoing, with no significant developments reported as of now.
