At a panel discussion in the European Parliament on Monday (19 February), industry experts emphasized the critical importance of enforcing competition laws in the realm of artificial intelligence to safeguard democracy.
The German competition authority (Bundeskartellamt) scrutinized the artificial intelligence sector in 2023, particularly focusing on the Microsoft OpenAI partnership. Concurrently, the European Commission initiated an inquiry into competition within virtual environments and generative AI, inviting contributions from stakeholders.
Similarly, the French competition authority (Autorité de la Concurrence) proactively investigated competitive practices within the industry in February.
Tobias Haar, from the legal team of generative AI startup Aleph Alpha, advocated for rebranding competition authorities to incorporate a democracy competition dimension, highlighting the intrinsic link between competition and democracy protection.
Barry Lynn, the executive director of the non-profit organization Open Markets Institute, cautioned that AI has the potential to exacerbate existing digital challenges. He proposed a shift in the EU’s competition framework to focus on safeguarding democracy and human liberty by regulating the behavior of corporations effectively.
Emphasizing the need to curb the manipulative practices of Big Tech, Andreas Mundt, the president of the German competition authority, underscored the profound risks that artificial intelligence poses to competition, society, and democracy at large.
Benoît Cœuré, his French counterpart, commended the EU’s proactive stance on addressing AI-related risks through initiatives like the EU AI Act. He stressed the importance of prioritizing these concerns over traditional competition issues.
Acknowledging the swift evolution of AI technology, EU Competition Commissioner Margrethe Vestager expressed skepticism about the trajectory of the AI revolution compared to the past. She highlighted the dominance of a few tech giants in controlling critical components like data, cloud infrastructure, and specialized skills, creating significant barriers to entry for AI startups.
Carel Maske, the director of competition at Microsoft, contended that the AI industry exhibits a diverse landscape with competition across various layers of the value chain. He defended the Microsoft-OpenAI partnership, stating that it does not entail exclusivity in technology usage.
However, concerns were raised about the potential influence of major tech companies on the AI ecosystem, particularly in light of partnerships like Microsoft’s collaboration with OpenAI. Calls for bold solutions were made to address issues such as monopolistic practices, data ownership, and manipulation in the industry.
In conclusion, there is optimism in leveraging the strengths of small and medium-sized enterprises in Europe, which possess specialized data that can be harnessed to develop highly effective AI models tailored to specific domains, offering a competitive advantage over Big Tech’s more generalized approaches.
