CMA probe of Google, Anthropic ‘a precautionary’ move: Analyst – Computerworld

A move by the UK’s Competition and Markets Authority (CMA) to formally launch a probe into Google’s purchase of a $2 billion stake in Anthropic, “sounds like a precautionary investigation across the board to me, primarily due to the fact that the CMA just recently approved Amazon’s Anthropic investment and partnership,” an industry analyst said Thursday.

Scott Bickley, advisory fellow at Info-Tech Research Group, said, “on the surface, the deal with Google seems materially similar in nature. Both Microsoft and Alphabet/Google are now being scrutinized for their respective partnerships with OpenAI and Anthropic by the CMA. The inquiry into Google may merit a closer look, however, in light of the DOJ’s recent finding against the company’s anti-competitive practices in the areas of search and advertising.”

The CMA, in a statement released Thursday, indicated that it had obtained “sufficient information” to launch a preliminary investigation into the investment by Google, which was first announced last year and involved an initial investment of $500 million, with the remainder to be invested at a later date.