FTC Shifts Focus to Competition Issues in AI Markets
The Federal Trade Commission is developing a distinct approach to evaluating competition in artificial intelligence markets, based on recent statements made during inquiries and enforcement actions.
The FTC's emerging framework reflects growing concern that AI development may concentrate market power in ways that differ from traditional tech sectors. The agency has signaled it will examine how companies build and maintain competitive advantages in AI through data access, model training, and computing infrastructure.
What the FTC is examining
The commission has begun scrutinizing whether dominant firms can use their scale to entrench market position in AI. This includes looking at exclusive data arrangements, preferential access to computing resources, and integration strategies that might foreclose competition.
The FTC's statements suggest the agency views AI markets as distinct enough to warrant tailored analysis. Traditional antitrust frameworks may not fully capture the dynamics of AI competition, where training data, algorithmic improvements, and computational power function as critical competitive factors.
Implications for companies and counsel
Companies developing or deploying AI systems should expect increased scrutiny of partnerships, data licensing deals, and infrastructure arrangements. Legal teams should review agreements that could be characterized as limiting competitors' access to essential inputs for AI development.
The FTC's approach remains in formation. Counsel working on AI-related transactions or competitive matters should monitor the agency's enforcement decisions and public statements for clearer guidance on what conduct will draw regulatory attention.
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