Competition Regulators Should Exercise Caution Against Speculative Concerns About AI as Innovation Stakes Rise, Says ITIF

WASHINGTON—Following the joint statement issued by Margrethe Vestager (Executive Vice-President and Competition Commissioner, European Commission), Sarah Cardell (Chief Executive Officer, U.K. Competition and Markets Authority), Jonathan Kanter (Assistant Attorney General, U.S. Department of Justice), and Lina Khan (Chair, U.S. Federal Trade Commission) about competition in AI, the Information Technology and Innovation Foundation (ITIF), the leading think tank for science and technology policy, released the following statement from Vice President Daniel Castro:

Competition regulators continue to raise speculative concerns about AI firms that might sound compelling in speeches and law journals, but do not match the reality of the market, which remains competitive and dynamic. Anti-competitive behavior from market leaders is a legitimate concern for any sector, but regulators should avoid preemptive interventions based on worst-case hypotheticals.

The principles proposed by the regulators seem designed to create new rules and expectations. For example, the call for interoperability in AI systems is vague, and without clear definitions, this principle could lead to overreach or misapplication. Likewise, the regulators’ emphasis on scrutinizing non-merger activities is misguided and potentially harmful and appears designed to justify recent inquiries retroactively.

In the context of global AI competition, particularly with China, U.S. regulators, and its allies, should exercise caution to avoid inadvertently harming U.S. competitiveness and technological advantage.

A more balanced approach is essential: one that addresses legitimate, evidence-based competition concerns while nurturing the substantial potential of AI innovation in the West. These competition regulators should also consider the broader geopolitical implications of AI development, as maintaining a competitive edge in AI is crucial for national security and economic leadership.

At this critical juncture in AI development, policymakers should ensure that competition regulators do not overstep their mandate and inadvertently sideline or undermine other important societal goals.