Google partnership with Anthropic AI cleared by competition watchdog
21 November 2024, 09:49
The Competition and Markets Authority said a provisional investigation found the link between the two companies did not meet the merger threshold.
Google’s partnership with AI firm Anthropic will not face further investigation by the UK’s competition regulator, it has been confirmed.
The Competition and Markets Authority (CMA) said its provisional examination of the link-up between the firms had found that it does not qualify for investigation under the merger provisions of UK competition law.
The CMA has previously raised concerns it had around large tech firms investing heavily in emerging AI companies and entering into AI-based partnerships with them, warning the process was a way for the biggest companies to consolidate power and resources within the growing AI sector.
Earlier this year, the regulator highlighted more than 90 partnerships and strategic investments between a handful of the same tech giants and AI start-ups in what it called an “interconnected web” – and has since launched investigations into a number of these deals, including those involving Apple, Google, Microsoft, Amazon, and ChatGPT maker OpenAI.
On its examination of Google and Anthropic, the maker of generative AI chatbot Claude, the CMA said it had found that Google had not acquired the ability to materially influence Anthropic’s commercial policy and therefore the partnership did not meet the threshold for UK merger control to apply.
The watchdog said its so-called turnover test was not met either, as Anthropic UK’s turnover does not exceed £70 million.
Joel Bamford, the CMA’s executive director of mergers, said: “This is another decision by the CMA which provides greater clarity for businesses and their investors.
“We know fair, open and effective competition unlocks opportunities for investment and supports innovation in important markets like these, and it’s through merger reviews that we can appropriately assess the nature and impact of complex partnerships such as the one between Google and Anthropic.”
An Anthropic spokesperson said: “We welcome the CMA’s decision to conclude their review of Google’s investment in us, as a result of their conclusion that Google does not have material influence over Anthropic.
“As we’ve made clear, Anthropic is an independent company and our strategic partnerships and investor relationships do not diminish our corporate governance independence or our freedom to partner with others.”
