The impact of AI is a critical consideration for enforcers of merger control policy, as stated by the European Union’s antitrust chief and digital EVP, Margrethe Vestager. She emphasized that “wide-reaching” digital markets can lead to unexpected economic effects, warning tech giants about increased scrutiny of their operations during a seminar discussing how to prevent the monopolization of AI.
Vestager also pointed out that AI’s impact should be carefully assessed in M&A deals and that barriers to entry for startups are everywhere, especially in the context of large language models (LLMs) and access to key AI infrastructure. The discussion highlighted the challenges and uncertainties faced by European AI startups in competing with US hyperscalers and their dedicated compute resources.
The seminar raised questions about how the EU can level the playing field for homegrown generative AI startups and hinted at the need for more laws to regulate AI risks. While Vestager did not provide concrete plans, she emphasized the importance of acting swiftly and cooperating to maximize the benefits of AI while minimizing the risk.
The discussion also included suggestions for potential solutions, including breaking off cloud into a utility, non-discrimination regime, and requisitioning aggregated public data from tech giants. The need for collaboration and clear communication among international enforcers, regulators, and policymakers was also highlighted as a critical piece for addressing the challenges posed by Big Tech and AI.
