Google (GOOGL, GOOG) and AI startup Anthropic are encountering potential regulatory hurdles in the UK as the Competition and Markets Authority (CMA) has called for further investigation into their collaboration. The CMA announced plans to initiate a formal Phase 1 merger inquiry, highlighting increased regulatory scrutiny on investments in AI startups globally.
Last year, Google committed to a $2 billion investment in Anthropic and signed a significant cloud services deal with the company. This move aligns with the CMA's efforts to ensure that investments by major tech companies do not distort the AI industry market. Similar investigations are also being conducted by the US Federal Trade Commission and the European Union.
Microsoft’s (MSFT) investment in OpenAI could also come under UK regulatory examination. In contrast, Amazon’s (AMZN) $4 billion investment in Anthropic was approved in September. The CMA noted that Anthropic's local market revenue and supply share in the UK do not meet the thresholds required for antitrust action, leading to the swift initiation and termination of inquiries into Microsoft’s dealings with Mistral and Inflection.
A decision on whether Google's collaboration with Anthropic warrants a more in-depth investigation is expected by mid-December. Google has declined to comment on the matter.
