AI Could Strengthen Big Tech Monopoly, Warns German Antitrust Head

by Agne Cimerman

Published: October 10, 2023 at 4:38 am Updated: October 10, 2023 at 4:38 am

by Victor Dey

Edited and fact-checked: October 10, 2023 at 4:38 am

In Brief

Germany’s cartel office head, Andreas Mundt, expressed concerns about Big Tech’s dominance through AI, citing their access to vast user data and robust server infrastructure.

The head of Germany’s cartel office, Andreas Mundt has raised concerns about the increasing influence of AI on Big Tech’s market power. He urges regulators to remain vigilant against potential anti-competitive behavior in the rapidly evolving AI landscape.

Mundt highlighted the significant advantage that companies like Alphabet’s Google and Microsoft hold in the AI space, owing to their access to vast user data and robust server infrastructure.

As AI continues to gain prominence in various sectors, including smart homes, web search, online advertising, and automotive technology — regulatory concerns have escalated worldwide. The European Union is racing to establish comprehensive AI regulations by year-end. Mundt emphasized the need for competition authorities to prevent AI from further strengthening the dominance of major corporations.

Besides concerns that AI will further empower dominant Big Tech companies, Mundt finds Europe’s investment and development conditions less favorable than those in the US. Furthermore, he sees competition tools primarily addressing issues like tying, envelopment, and mergers rather than promoting cooperation, such as Microsoft’s partnership with OpenAI. He also believes that regulating AI through the EU’s AI Act may be premature due to early-stage AI development.

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

While Mundt acknowledged that competition in the AI field is still possible, he cautioned against potential scenarios where smaller AI providers could evolve into dominant platforms or operating systems, potentially stifling competition from the outset.

As regulators grapple with the challenges posed by AI’s rapid growth, ensuring a level playing field and preserving competitive potential remains a top priority.

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About The Author

Agne is a journalist who covers the latest trends and developments in the metaverse, AI, and Web3 industries for the Metaverse Post. Her passion for storytelling has led her to conduct numerous interviews with experts in these fields, always seeking to uncover exciting and engaging stories. Agne holds a Bachelor’s degree in literature and has an extensive background in writing about a wide range of topics including travel, art, and culture. She has also volunteered as an editor for the animal rights organization, where she helped raise awareness about animal welfare issues. Contact her on agnec@mpost.io.

Agne Cimerman