Open Markets joins civil society organisations in contribution on highly concentrated generative AI sector

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Barry Lynn, executive director, Open Markets Institute | Open Markets Institute website

Open Markets joins civil society organisations in contribution on highly concentrated generative AI sector

The Open Markets Institute has partnered with AI Now Institute, Foxglove, ARTICLE 19, Mozilla Foundation, SOMO, Irish Council for Civil Liberties / Enforce, and Rebalance Now to submit a response to the European Commission's request for contributions on competition in generative artificial intelligence (AI). The coalition's 11-page response outlines concerns and offers potential solutions.

On May 9, 2024, the European Commission opened two separate calls for contributions according to a press release. One call focused on competition in virtual worlds while the other sought insights into competition in generative AI. The commission expressed interest in understanding the impacts of agreements between large digital market players and generative AI developers and providers. It also indicated its intention to review Microsoft's investment in OpenAI under EU Merger Regulation. The contribution period for both calls ended on March 11, 2024.

In their submission, the group outlined early actions by Big Tech companies that could position them as dominant forces in the AI market. "Any sensible regulatory action in generative AI must begin with a hard truth: power in the sector is already highly concentrated. Decades of underenforcement of competition rules in digital markets have consolidated resources and capabilities in the hands of a few dominant firms, with high costs for our economies and societies," stated an Open Markets press release.

Open Markets also offered several recommendations to address this concentration of power and control. These include reforming the EU merger control regime to allow investigations into AI partnerships and minority investments not currently within the scope of EU Merger Regulation. The group further suggested introducing a "legal presumption" against acquisitions by dominant firms.

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