Following the “first tech monopoly trial of the internet era” against Google, U.S. antitrust regulators are turning their attention to artificial intelligence (AI). The Department of Justice (DOJ) and Federal Trade Commission (FTC) are scrutinizing major players in the AI space, aiming to address potential monopoly choke points and ensure fair competition in this transformative technology sector.

DOJ AND FTC TAKE ON AI GIANTS

Assistant Attorney General Jonathan Kanter of the DOJ Antitrust Division revealed that his team is closely examining monopoly risks and the competitive dynamics of AI. Similarly, FTC Chair Lina Khan stated that the agency is investigating whether partnerships and investments in AI allow dominant firms to bypass merger reviews and exert undue influence.

To divide oversight responsibilities, the DOJ is focusing on Nvidia, a leader in AI hardware and GPUs, while the FTC investigates Microsoft and OpenAI, the creator of ChatGPT.

Khan highlighted concerns about partnerships that could distort fair competition across the "AI stack" — the infrastructure, platforms, and applications underpinning AI technology. This strategy mirrors the approach taken in past antitrust actions against Google, Apple, and Amazon.

EUROPE’S AI ACT: A REGULATORY BENCHMARK

While U.S. regulators are ramping up, Europe has already enacted the AI Act, setting a global benchmark for AI governance. Passed in December, the AI Act:

• Targets high-risk AI applications, such as those impacting critical infrastructure and security.
• Imposes transparency requirements on AI developers, including labeling AI-generated content like deepfake images and videos.
• Establishes clear guidelines for ethical AI deployment.

The proactive stance of the European Union contrasts sharply with the U.S., where legislative action has been slower. The first draft of the AI Act was circulated in 2021, years ahead of any comparable U.S. initiative.

THE U.S. LAGS IN AI REGULATION

Despite increasing scrutiny, the U.S. lacks comprehensive legislative frameworks for AI regulation. In May, Senate Majority Leader Chuck Schumer and a bipartisan group proposed $32 billion for AI research and development but omitted specific regulatory measures.

Legislators’ hesitation is understandable given AI’s trillion-dollar growth potential, but delaying regulatory efforts risks creating a fragmented and monopolized market.

WHAT LIES AHEAD?

The DOJ and FTC investigations mark an important step in policing AI monopolies. However, without concrete regulations, the U.S. risks falling behind global standards set by the EU. The ongoing scrutiny of Nvidia, Microsoft, and OpenAI could lead to landmark cases shaping the AI market’s future.

For businesses navigating the evolving AI landscape, understanding antitrust and regulatory dynamics is crucial. Contact The Law Offices Of Destiny Aigbe PLLC to ensure compliance and stay ahead of regulatory developments.