Source: Pinsent Masons

On July 26, 2024, a joint international statement on AI competition was signed by the European Commission, the US Federal Trade Commission (FTC) and Department of Justice (DOJ), and the UK’s Competition and Markets Authority (CMA). This collaboration aims to promote fair competition and innovation in AI technologies while addressing potential antitrust issues. The joint statement emphasizes three principles: fair dealing, interoperability, and choice, reflecting core principles of digital market competition rules in the EU and UK.

The European Commission intends to use the Digital Markets Act (DMA) to regulate AI embedded in core platform services. Similarly, the UK’s CMA will consider AI deployment when designating technology firms under the Digital Markets, Competition and Consumers Act 2024 (DMCCA). Both authorities will continue using wider competition laws to address AI-related concerns.

Competition law expert Alan Davis highlights the significance of this joint effort, noting the potential risks AI poses to competition and the importance of international cooperation. The statement underscores the need for proactive measures to prevent large tech companies from monopolizing emerging AI markets, which could hinder innovation and harm consumer welfare.

Moreover, the statement points to the increased scrutiny of mergers and acquisitions involving AI, with authorities wary of algorithmic price-fixing and other collusive behaviors facilitated by AI tools. Nils Rauer, an AI and technology law expert, emphasizes the necessity of swift regulatory responses to unlawful practices in AI.

The new EU AI Act will enable market surveillance authorities to report potential competition rule infringements involving AI. Both the EU and UK competition authorities enforce consumer protection laws alongside antitrust regulations to safeguard consumers using AI products.