As artificial intelligence (AI) reshapes the tech landscape, UK and EU competition authorities are increasingly scrutinizing mergers, particularly involving AI-driven transactions to prevent underenforcement seen in prior digital markets. This involves examining unconventional deal structures, including acqui-hires and strategic partnerships, which may transfer competitive assets and enhance the market position of dominant firms. Notable cases like Microsoft/Inflection highlight a shift in the interpretation of merger control, where hiring agreements are now monitored for their potential to consolidate competitive capabilities. The CMA’s approach encompasses material influence, while the EU’s jurisdiction remains limited by recent legal rulings. Regulatory adaptations like the UK’s Digital Markets, Competition and Consumers Act 2024 aim to address perceived enforcement gaps, broadening the scope of merger reviews in AI. As both jurisdictions refine their frameworks, the evolving enforcement landscape raises crucial implications for innovation and market competition in the AI sector.
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