AI Could Increase Big Tech’s Dominance, Claims German Antitrust Head

AI Could Increase Big Tech's Dominance, Claims German Antitrust Head
AI Could Increase Big Tech's Dominance, Claims German Antitrust Head

The head of Germany’s cartel agency warned that AI may increase Google and Microsoft’s tendency for anti-competitive behaviour.

Andreas Mundt, the head of Germany’s cartel agency, has cautioned that artificial intelligence may increase Big Tech’s market strength and that authorities should keep an eye out for anti-competitive behavior.

Mundt’s comments highlight regulatory fears that tech behemoths, with their massive troves of user data, may gain a competitive advantage in new technology used in smart homes, web search, online advertising, autos, and a variety of other products and services.

Alphabet’s Google and Microsoft have recently become AI rivals, with the latter aggressively investing in OpenAI and the former developing the Bard AI chatbot, among other initiatives.

The rise in popularity of AI has caused governments throughout the world to try to put regulations on its usage, with the European Union racing to implement historic AI legislation by the end of the year.

“It is critical for us as a competition authority that this new technology does not further strengthen the dominance of large corporations,” Mundt stated in an interview on Friday.

“The risk is high because AI requires two things above all else: powerful servers and massive amounts of data.” “Both are present in large internet corporations,” he claims.

Mundt stated that the field is still open to competition, but that regulators must assure that it remains so.

“However, models from smaller providers could also become so popular that they develop in the direction of a kind of operating system, a new platform,” he added.

“Both developments are possible, and as an authority, we have to be careful that any competitive potential is not buried from the outset.”

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