The Competition Authority Has Launched a Sector Inquiry into Artificial Intelligence

The Competition Authority (Authority) has announced that it has launched a comprehensive sector inquiry into the artificial intelligence ecosystem. Considering the rapid developments in the field of artificial intelligence, which are giving rise to a new competitive landscape shaped around data, computing power, and platform ecosystems, the Authority aims to assess the impact of this transformation on markets from a holistic perspective and to identify emerging competition risks in a timely manner.

In its announcement, the Authority stated that access to key inputs such as data, computing capacity, technical expertise and financing is decisive in the AI value chain, particularly in the development of foundation models, and that undertakings with early and intensive access to these resources can strengthen their market power by positioning themselves across multiple layers of the value chain.

Furthermore, it was emphasized that the integration of AI technologies into the existing products and services of large digital platforms may give rise to risks from a competition law perspective, including self-preferencing, exclusionary practices, bundling, access restrictions and increased switching costs.

In addition, it was noted that developments in the field of AI require closer scrutiny in merger and acquisition transactions, particularly in light of factors such as data advantages, complementarities, potential competition and the protection of innovation.

Within this scope, the sector inquiry will analyze how the AI ecosystem, particularly around foundation models, is structured, the relationships between different layers of the value chain, conditions for access to critical inputs, interactions between large technology undertakings and innovative startups, as well as the impact of data and computing power on competition.