The UK antitrust regulator has already targeted Google and is now expected to launch an investigation into its ties to Amazon and AI startup Anthropic. The investigation was prompted after Amazon invested US$4 billion in the startup.
The investigation will decide whether the investment qualifies as a merger under the current regulations set by the country's Competition and Markets Authority (CMA). Investigators have 40 working days to make a decision.
Amazon previously said the investment did not give it a majority stake in Anthropic. The company further said Financial Times The investment “did not raise any competition concerns or meet the CMA's own review threshold”. Anthropic also dismissed the idea that the investment represented any kind of merger.
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“We are an independent company,” a spokesperson said in a statement. “Amazon does not sit on Anthropic's board nor does it have any board audience rights. We intend to collaborate with the CMA to provide them with a comprehensive understanding of Amazon's investment and our business collaboration.
- The investigation is a small piece of a larger puzzle as UK regulators seek to control “proximity links”.
- This is when large companies exert more influence over startups through strategic investments or talent acquisitions.
- This would, in theory, give the old company all the benefits of a merger, but without the regulatory scrutiny that accompanies an official takeover.
The regulator is investigating Microsoft's close partnership with OpenAI, another billion-dollar investment.
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