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Competition regulator clears Amazon’s partnership with AI firm Anthropic

The Competition and Markets Authority said its initial investigation had found the partnership did not qualify for further investigation. Read More...

Amazon’s partnership with AI firm Anthropic does not qualify for further investigation over concerns about impacting competition in the AI sector, the UK’s competition regulator has said.

The Competition and Markets Authority (CMA) said its initial Phase 1 investigation into whether Amazon’s four billion dollar investment and other arrangements with Anthropic created a merger situation that could impact competition in the sector.

The watchdog has been vocal about its concerns around large tech firms investing heavily in AI start-ups and earlier this year highlighted a number of what it called an “interconnected web” of more than 90 partnerships and strategic investments between a small handful of the biggest tech and AI firms, a set-up it warned could be used to consolidate power and resources within the sector.

It has since launched a number of investigations into similar partnerships.

In this case, the CMA said that it tested Amazon’s arrangements with Anthropic against thresholds for turnover and share of supply, concluding that neither was met, and therefore a further investigation will not be pursued.

Writing on LinkedIn, Joel Bamford, executive director of mergers at the CMA, said: “Reviews like this help us to gain more clarity around whether they could fall under UK merger rules and any subsequent impact they could have on competition, and we hope that this clarity also benefits businesses with an interest in these markets.

“Our investigation into Amazon’s partnership with Anthropic found that that Amazon’s four billion dollar investment into Anthropic allowed it to enter multiple non-exclusive arrangements with Anthropic and secure certain rights in connection with its investment.

“Having tested these arrangements against the UK merger control jurisdiction thresholds for turnover and share of supply, we have concluded that they are not met. We also considered whether the arrangements allowed Amazon to exercise material influence over Anthropic.

“Ultimately, given neither of the required turnover or share of supply tests were met, we did not need to reach a conclusion on material influence.

“As a result, we do not believe that a relevant merger situation has been created and will not refer this for further investigation.”

Separate investigations into partnerships between Google and Anthropic and Microsoft and ChatGPT maker OpenAI remain ongoing, the CMA confirmed.

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