Preserving competition in generative AI: addressing the merger conundrum

The recent surge of attention from antitrust authorities signals a deep-seated concern over the substantial investments made by Big Tech companies in the generative artificial intelligence (genAI) market. This attention reflects a broader recognition of the potentially transformative impact of genAI and a firm resolve to maintain competitive and innovative market dynamics. At the heart of this trend lies a fundamental question: why are major antitrust authorities investing considerable effort in gathering information about Big Tech’s ventures into genAI markets, and what specific competitive issues are motivating such an interest? From these fundamental questions, the chapter will explore the application of merger control frameworks to scrutinize Big Tech’s genAI investments, through the merger control tool. Additionally, it will delve into the theories of harm that could justify authorities intervening to block such transactions. Ultimately, the chapter seeks to offer nuanced reflections on the practicality and efficacy of deploying antitrust authorities’ interventions within this rapidly evolving landscape.