European Union: Issued Joint Statement on Competition in Generative AI Foundation Models and AI Products

On 23 July 2024, the European Commission, the UK Competition and Markets Authority (CMA), the US Federal Trade Commission (FTC), and the US Department of Justice (DOJ) issued a Joint Statement on Competition in Generative AI Foundation Models and AI Products. The Joint Statement outlines the main competition risks associated with AI foundation models including concentrated control of key inputs, entrenching or extending market power in AI-related markets, and arrangements involving key players related to the development of generative AI which undermine or coopt competitive threats and steer market outcomes at the expense of the public. In order to address these risks and others such as the risk that algorithms can allow competitors to share competitively sensitive information, fix prices, or collude on other terms or business strategies, or the risk that algorithms may enable firms to undermine competition through unfair price discrimination or exclusion, the Joint Statement highlights the importance of enabling competition and fostering innovation through common principles of fair dealing, interoperability, and choice.