The European Union’s antitrust chief and digital EVP, Margrethe Vestager, has issued a warning to Big Tech companies, signaling a more rigorous examination of their AI partnerships and operations. Speaking at a seminar, Vestager emphasized the need to consider the impact of AI in merger assessments and the potential for new forms of algorithmic collusion. This suggests that the EU will intensify its scrutiny of tech mergers and AI partnerships in the future.
Key Takeaway
EU Antitrust Chief Margrethe Vestager warns of heightened scrutiny for Big Tech’s AI partnerships and operations, signaling a more comprehensive assessment of tech mergers and AI tie-ups in the future.
Increased Scrutiny of Tech M&A and AI Partnerships
Vestager’s address highlighted the challenges posed by the development of cutting-edge AI, particularly the barriers to entry for European AI startups in competing with US hyperscalers. She underscored the significant resources and infrastructure controlled by tech giants, raising concerns about the unequal playing field for AI development.
Challenges Faced by European AI Startups
The seminar discussions also delved into the uncertainties surrounding access to key AI inputs, with European startups expressing concerns about competing with the dedicated compute resources of tech giants. Vestager’s address indicated a readiness to employ existing competition tools, such as the Digital Markets Act, to shape the AI market and address potential risks and harms.