The EU is monitoring the latest moves by Microsoft and Google in the AI field as the organization wants to ensure that antitrust laws are being followed. The EU has historically enacted laws in favor of free competition in member states, which especially affects companies like Apple.
AI-based products and services are taking the tech industry by storm at an incredible rate. Many companies, including non-tech companies, are now adopting AI. In the mobile space, Google was a pioneer in adopting complex AI models.
Google and Microsoft under EU scrutiny over AI deals
Smartphones are portable and compact, which means that large LLMs cannot be integrated into them. However, taking this into account, Google developed a “lite” version of its Gemini AI model, the Gemini Nano. Currently, this model is integrated into the Pixel 8 series and the Galaxy S24 series. Integration into Samsung mobile devices is one of the aspects being considered by the EU.
The group is concerned that such agreements between industry giants could affect smaller businesses. EU Competition Commissioner Margrethe Vestager said, “Big tech companies could make it harder for smaller foundational model developers to reach end users.” Part of the concern is the amount of resources required to develop AI models.
Regarding Microsoft, Vestager said the EU “wants to understand whether certain exclusivity clauses may have a negative impact on competitors.” In this case, he is referring to the huge investments that Microsoft is making in OpenAI, the company behind ChatGPT. To date, the Redmond giant has invested a massive $13 billion. In addition, the EU is monitoring situations where large companies acquire smaller companies to gain talent. Microsoft’s acquisition of Inflexion is one example of this.
Complete AI legislation still under discussion
The legislation on AI-based products and developments that have taken the tech industry by storm remains to be enacted. The speed of the AI industry’s development makes this task even more difficult. In this regard, the EU Executive stated that “a number of other preliminary antitrust investigations into various practices in AI-related markets are ongoing.” Vestager also pointed out that “the time to act is now. Strong competition enforcement is always necessary at times of major industrial and technological change.”
The EU’s goal is to prevent a few big companies from dominating the AI field. “We will be vigilant,” Vestager added.
