The US Federal Trade Commission has launched another investigation on the "investments and partnerships" between AI developers and major cloud service providers.
FTC Chair Lina Khan said the extensive inquiry on industry giants like Amazon, Google, Microsoft, and OpenAI will help determine whether the companies are "using their power to thwart competition or trick the public."
The investigation is in accordance with FTC's mandate, allowing the commission to obtain "reports or answers in writing to specific questions" from concerned companies.
If the investigation pushes through, this will be FTC's second direct involvement in the AI industry as the regulator cracks down on anti-competition practices brought by the emerging technology.
What the FTC Will Investigate?
According to the FTC, it is set to inquire about specific information that will help the agency gain a "deeper understanding of market trends and business practices" of AI services.
Among the main priorities of the agency is to determine the "practical implications" of the partnerships on new product releases, governance, and oversight rights.
The deals' impact on the competitive market will be another focus of the study, particularly those related to market share, potential for sales growth, and the product's expansion.
The FTC will also be requiring the companies to disclose how much information on the AI deals are disclosed to government entities inside and outside the country.
Big Techs: FTC Investigation is OK
Surprisingly, both Microsoft and Google are fine with the inquiry.
Microsoft told CNBC that "we look forward" on the investigation, while Google sees the inquiry as a way to prove the search giant's openness in AI development.
Amazon and OpenAI declined to comment on the investigation.
The Big Techs have long faced scrutiny on anti-trust practices from regulators. Amazon, Google, and Microsoft are even labeled as "gatekeepers" under the EU's Digital Markets Act.
The FTC itself has conducted a similar study on the Big Techs in 2020 over deals and partnerships not declared to the antitrust agencies.
Related Article : Big Tech Companies Accused of Ignoring New EU Rules
