UK Amazon Anthropic probe overview:
- Who: Britain’s Competition and Markets Authority announced it is beginning an initial probe into a $4 billion partnership between Amazon and the artificial intelligence and safety company Anthropic.
- Why: The antitrust authority is investigating if the partnership could hurt competition in U.K. markets. The initial investigation will also determine whether the CMA decides to conduct a more in-depth phase two investigation.
- Where: The CMA is determining whether the Amazon and Anthropic partnership will harm competition in any domestic U.K. market for goods and services.
The Competition and Markets Authority (CMA) said it has “sufficient” information to begin an investigation into a $4 billion partnership between Amazon and the artificial intelligence and safety company Anthropic.
The U.K. antitrust authority’s announcement came earlier this month. A formal probe will now begin into the partnership between Amazon and Anthropic.
The investigation is for the purpose of determining whether the companies partnership could damage competition in U.K. markets, reports Law360.
The CMA will reportedly have until Oct. 4 to determine whether it wants to increase the probe into a so-called phase two investigation, which would take a more in-depth look into the deal.
The CMA’s decision to investigate the Amazon and Anthropic partnership came after it asked interested parties to respond to the question of whether the deal could harm competition in any domestic U.K. market for goods and services, reports Law360.
Amazon granted access to Anthropic’s most powerful AI models
Amazon reportedly invested $1.25 billion in Anthropic in September 2023 and an additional $2.75 billion in March 2024. Anthropic is using Amazon Web Services as its primary cloud provider, per the deal, while Amazon, in return, is able to access Anthropic’s most powerful AI models, reports Law360.
Anthropic has maintained that it is an independent company and reportedly said in a statement that its partnerships and investors does not diminish its “corporate governance independence,” or its “freedom to partner with others.”
Amazon, meanwhile, said it was disappointed that the CMA is continuing its probe into the deal, while maintaining that it and other companies investing in Anthropic helps it “expand choice and competition in this important technology,” reports Law360.
The head of the law school at University of East Anglia filed a £2.7 billion class action lawsuit against Amazon earlier this summer over claims the company discriminates against third-party sellers on its e-commerce platform.
Are you concerned the Amazon and Anthropic partnership could harm competition in U.K. markets? Let us know in the comments.
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