Google's partnership with Anthropic AI cleared by competition watchdog

Google’s partnership with AI firm Anthropic will not face further investigation by the UK’s competition regulator, it has been confirmed.

The Competition and Markets Authority (CMA) has wrapped up its initial probe, finding that the collaboration doesn't trigger the merger thresholds under British competition law. The CMA has previously raised concerns it had around large tech firms investing heavily in emerging AI companies and entering into AI-based partnerships with them, warning the process was a way for the biggest companies to consolidate power and resources within the growing AI sector.

Just this year, the regulatory body pointed out an "interconnected web" of over 90 such dealings involving Apple, , Microsoft, Amazon, and the creator behind ChatGPT, OpenAI—which has prompted the launch of several investigations by the CMA into the partnerships.

However, on examination or the tie-up between Google and Anthropic, which is behind the AI chatbot Claude, they've decided that Google doesn't hold enough sway over Anthropic's to warrant intervention; plus, Anthropic UK's turnover doesn not exceed £70m, not hitting the monetary mark for a full-blown merger inquiry.

Joel Bamford, the CMA’s senior director of mergers, commented: "This is another decision by the CMA which provides greater clarity for businesses and their investors.

"We know fair, open and effective competition unlocks opportunities for investment and supports innovation in important markets like these, and it’s through merger reviews that we can appropriately assess the nature and impact of complex partnerships such as the one between Google and Anthropic."