Exploring Antitrust and Platform Power in Generative AI

TL;DR

This paper examines the market dominance of major tech companies in generative AI, analyzing antitrust concerns and platform power, inspired by historical antitrust debates like Amazon's case.

Contribution

It provides an analysis of how leading tech firms' control over generative AI impacts competition from an antitrust law perspective.

Findings

Major tech companies dominate generative AI markets

Antitrust issues are emerging around platform power

Potential regulatory challenges are discussed

Abstract

The concentration of power in a few digital technology companies has become a subject of increasing interest in both academic and non-academic discussions. One of the most noteworthy contributions to the debate is Lina Khan's Amazon's Antitrust Paradox. In this work, Khan contends that Amazon has systematically exerted its dominance in online retail to eliminate competitors and subsequently charge above-market prices. This work contributed to Khan's appointment as the chair of the US Federal Trade Commission (FTC), one of the most influential antitrust organisations. Today, several ongoing antitrust lawsuits in the US and Europe involve major technology companies like Apple, Google/Alphabet, and Facebook/Meta. In the realm of generative AI, we are once again witnessing the same companies taking the lead in technological advancements, leaving little room for others to compete. This article examines the market dominance of these corporations in the technology stack behind generative AI from an antitrust law perspective.