Amazon Dodges UK Antitrust Scrutiny Over Anthropic Investment

The U.K.'s Competition and Markets Authority (CMA) has concluded that Amazon’s partnership and $4 billion investment in AI startup Anthropic does not fall under its current merger rules. The CMA's decision stems from the size and scope of the deal, which does not meet the necessary thresholds for investigation under the Enterprise Act 2002.

Amazon’s $4 Billion Investment in Anthropic

Amazon’s significant investment in Anthropic, a leading AI startup focused on developing large language models (LLMs) and a chatbot called Claude, has drawn attention due to its parallels with other prominent AI platforms like OpenAI’s ChatGPT and Google’s Bard. Anthropic, which operates as a public benefit corporation (PBC), has raised around $10 billion since its founding, including more than $2 billion from Alphabet’s Google subsidiary.

The CMA had launched a preliminary inquiry into Amazon's potential influence over Anthropic through this partnership but found that the company's U.K. turnover did not meet the £70 million threshold for an antitrust review.

CMA’s Focus on Big Tech’s Growing Influence in AI

This decision is part of a broader scrutiny of Big Tech’s involvement in AI startups. Critics argue that companies like Amazon and Google are pursuing “quasi-merger” strategies—making strategic investments or hiring startup talent—without fully acquiring the startups. This approach allows these tech giants to gain influence without triggering full-scale merger investigations.

In the case of Amazon and Anthropic, the CMA determined that no "relevant merger situation" had been established, meaning the authority did not assess whether Amazon had gained material influence over Anthropic. The companies also do not account for 25% or more of the relevant goods or services, which is another factor for launching a full investigation.

Ongoing CMA Investigations

Anthropic responded to the CMA’s findings by reiterating its independence. In a statement to TechCrunch, the company emphasized that its strategic partnerships and investor relationships do not compromise its corporate governance or its ability to form new partnerships.

The CMA’s focus on AI-related deals includes other recent investigations. For instance, Microsoft’s acquisition of Inflection was ruled as a quasi-merger, while the tech giant also avoided antitrust scrutiny for its investment in Mistral AI. Additionally, the CMA continues to review Microsoft's close relationship with OpenAI, though there has been no significant update on that case.

What’s Next for Big Tech and AI?

As AI becomes an increasingly critical sector, regulatory bodies like the CMA are paying closer attention to the relationships between Big Tech and AI startups. Although Amazon’s investment in Anthropic dodged antitrust scrutiny, the ongoing debate over Big Tech’s influence on AI continues, with more investigations likely to follow.