Examination by CMA on Google and Anthropic termed as ‘a precautionary’ move by Analyst
The UK’s Competition and Markets Authority (CMA) has taken a step to formally investigate Google’s acquisition of a $2 billion stake in Anthropic.
The UK’s Competition and Markets Authority (CMA) has taken a step to formally investigate Google’s acquisition of a $2 billion stake in Anthropic. “The investigation appears to be a precautionary measure across all fronts, particularly because CMA recently gave the go-ahead to Amazon’s investment and partnership with Anthropic,” noted an industry analyst on Thursday.
According to Scott Bickley, who serves as an advisory fellow at Info-Tech Research Group, “the agreements with Google and Amazon seem quite alike on the surface. Both Microsoft and Alphabet/Google are now under the CMA’s microscope for their collaborations with OpenAI and Anthropic. However, given the Department of Justice’s recent ruling on Google’s anti-competitive behavior in search and advertising, the scrutiny on Google might require a deeper investigation.”
In a statement released on Thursday, the CMA highlighted that it had gathered “sufficient information” to commence a preliminary probe into Google’s investment. The deal, which was initially announced last year and involved an initial investment of $500 million, with the rest to follow at a later date, is now under CMA’s scrutiny.
