Civil society organizations are urging the European Commission to intervene and prevent Big Tech companies from dominating the generative artificial intelligence (genAI) market. They claim that blocking these tech giants' AI tools would have no downside for EU consumers.
The concern is that Big Tech companies like Microsoft, Google, Nvidia and Amazon are already exerting significant influence over the genAI value chain, controlling essential components like chips, cloud computing and data. This concentration of power could stifle competition and innovation, ultimately harming consumers and small businesses.
Big Tech companies have vast amounts of sensitive data, making it difficult for smaller companies to compete. Control over server farms, data centers and microchips gives Big Tech an unfair advantage. The scarcity of skilled talent and high fixed costs in hiring further solidify Big Tech's position.
To address these concerns, the European Commission is being urged to leverage competition powers like the EU Merger Regulation and Digital Markets Act. A new market investigation tool, modelled on similar regimes in the UK and Germany, could also be introduced. Additionally, the Digital Markets Act could be upgraded to include AI foundation models in the list of core platform services.
The Commission is also being asked to investigate anti-competitive partnerships and minority shareholdings that may harm competition. By taking these steps, the European Commission can promote a more competitive and innovative AI ecosystem, ultimately benefiting EU consumers and businesses.
