Google (GOOG, GOOGL) and AI startup Anthropic are facing potential hurdles in the UK due to a call for further investigation into their partnership by competition regulators. The UK's Competition and Markets Authority (CMA) announced that it is launching a formal Phase 1 merger inquiry. This move reflects a broader trend of stricter regulation concerning AI startup investments.
Last year, Google committed to a $2 billion investment in Anthropic, which included a significant cloud agreement prior to the funding. The CMA, along with global regulatory bodies, is increasingly vigilant in ensuring that large tech investments in the AI sector do not distort market competition. Similar probes are underway by the U.S. Federal Trade Commission and the European Union into various partnerships.
The UK regulatory body might also assess Microsoft's (MSFT) investment in OpenAI, although Amazon's (AMZN) $4 billion investment in Anthropic received approval in September. The CMA determined Anthropic's local market revenue and supply share in the UK were insufficient to trigger antitrust interventions. Additionally, it swiftly concluded an investigation into Microsoft’s dealings with Mistral and Inflection.
The CMA is set to decide by December 19 whether a more in-depth inquiry into Google and Anthropic's collaboration is necessary. Google has declined to comment on the matter.
