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Britain’s Competition and Markets Authority (CMA) announced on Tuesday that it is investigating whether Alphabet Inc.’s partnership with artificial intelligence startup Anthropic could potentially lessen competition in the U.K. market. The probe aims to determine if the collaboration between the two companies constitutes a “relevant merger situation” and if it may substantially reduce competition.
The CMA has invited feedback from interested parties before initiating a formal investigation. An Anthropic spokesperson confirmed that the company would fully cooperate with the CMA and provide comprehensive details about its commercial collaboration with Google. The spokesperson emphasized that Anthropic maintains its independence and is free to partner with other entities, countering concerns about reduced competition.
Anthropic noted that, unlike OpenAI’s previous arrangement with Microsoft, neither Google nor Amazon holds any board seats or observation rights at Anthropic. Furthermore, Anthropic’s AI models are available on multiple platforms, including Google’s Vertex AI and Amazon’s Bedrock, ensuring non-exclusive access.
In response to the investigation, Google defended its position, asserting its commitment to fostering an open and innovative AI ecosystem. The company highlighted that Anthropic is not bound to exclusive technology rights with Google and actively utilizes multiple cloud providers.
Google’s investment in Anthropic, announced in October, involves a $500 million upfront payment and a potential additional $1.5 billion, resulting in an estimated 10% stake in the AI startup. Anthropic is known for its Claude chatbot, a competitor to OpenAI’s ChatGPT.
This investigation forms part of a broader trend of increased scrutiny from regulators in both the U.S. and U.K. regarding major tech companies’ investments in smaller firms. The CMA has previously examined other AI partnerships, including those between Microsoft and French AI firm Mistral, as well as Amazon’s investments in Anthropic.
The Federal Trade Commission (FTC) in the U.S. is also reviewing similar deals, as regulators aim to ensure that significant tech investments do not undermine market competition. The CMA’s recent focus includes high-profile cases such as the initial blocking of Microsoft’s $69 billion acquisition of Activision Blizzard, although the deal was eventually approved.