Manatt Competition and Antitrust Partner Dylan Carson and data privacy and security partner Paul Luhr were cited in Corporate Council about the growing sentiment among regulators to find ways to prevent artificial intelligence (AI) platforms from creating antitrust challenges in the same way that Big Tech has done.
Carson said competition authorities are trying to "get ahead of any potential dominance issues" and avoid past mistakes after regulators have raised concerns that AI's prominence in the market and its rapid advancement could lead to that the already dominant digital powers further consolidate their power after large companies. Technology exploded at the beginning of the century. He said statements from regulators recognizing the power of AI and concerns about certain players dominating the market are a sign that "they are on the same page to try to prevent a new nascent technology from replicating the same scenario they have witnessed." "
With more eyes on the AI โโmarket, Luehr, a former FTC member, said companies will need to evaluate how strategic moves might work with global regulators, adding: "They're concerned about the underlying data, the computing power "to process the data and the talent you need to bring those forces together. That seems to be the three-legged stool that the G7 is worried about."
Luehr also noted that the path for a startup to be acquired by a large technology company has become more challenging as FTC scrutiny increases and a more cautious approach is taken with AI.
"It's much easier to take an antitrust position as a preventative measure than as a corrective measure," he said. "For that reason alone, we can expect to see a much more aggressive stance on antitrust and competition during this round than we saw 20 years ago."
Corporate Council subscribers can read the full article here.
