On Thursday, the Federal Trade Commission (FTC) announced a comprehensive study into the operations of leading artificial intelligence (AI) companies, including Amazon, Alphabet, Microsoft, Anthropic, and OpenAI. This announcement was made by FTC Chair Lina Khan at the agency’s tech summit focused on AI. She referred to the study as a “market inquiry,” aimed at scrutinizing the burgeoning partnerships and investments between AI developers and prominent cloud service providers.
The FTC plans to leverage its 6(b) study powers, derived from Section 6(b) of the FTC Act, to conduct this investigation independently of its law enforcement activities. This provision enables the agency to issue civil investigative demands, compelling firms to submit detailed reports and written responses about their operations. In response to this development, both Amazon and OpenAI have chosen not to comment, while Anthropic has yet to reply to CNBC’s request for feedback.
This initiative mirrors the FTC’s previous investigative efforts. In 2022, the agency undertook a similar inquiry into the prescription drug intermediary sector, directing the six largest pharmacy benefit managers to disclose information about their business practices. Additionally, in 2020, the FTC executed a comparable study, focusing on historical acquisitions by major tech firms such as Alphabet, Amazon, Apple, Microsoft, and Facebook (now Meta), where these companies were required to furnish details about acquisitions that had not been previously reported to antitrust authorities.
Here’s what those involved said about the inquiry:
“At the FTC, the rapid development and deployment of AI is informing our work across the agency. There’s no AI exemption from the laws on the books, and we’re looking closely at the ways companies may be using their power to thwart competition or trick the public.
What AI liability regimes will ultimately look like is still an open question. Our enforcement experience in other domains will directly inform how the FTC approaches this work.”
— FTC Chair Lina Khan
“We hope the FTC’s study will shine a bright light on companies that don’t offer the openness of Google Cloud or have a long history of locking-in customers — and who are bringing that same approach to AI services.”
— Google spokesperson
“Partnerships between independent companies like Microsoft and OpenAI, as well as among many others, are promoting competition and accelerating innovation. We look forward to providing the FTC with the information it needs to complete its study.”
— Rima Alaily, corporate VP of Microsoft’s competition and market regulation group
Featured image: Credit: FTC
