The study will focus on companies such as Amazon, Alphabet, Microsoft, Anthropic, and OpenAI. FTC Chair Lina Khan made the announcement during the agency's tech summit on AI, referring to it as a "market inquiry into the investments and partnerships being formed between AI developers and major cloud service providers."
By utilizing its authority to conduct a 6(b) study, named after Section 6(b) of the FTC Act, the regulator will be able to investigate the AI companies separately from its law enforcement arm and issue civil investigative demands. This means that the agency can require companies to submit specific reports and provide written responses to questions about their business practices.
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Khan emphasized the importance of closely examining the ways in which companies may be using their power to hinder competition or deceive the public. She stated, "There's no AI exemption from the laws on the books, and we're looking closely at the ways companies may be using their power to thwart competition or trick the public."
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This is not the first time the FTC has launched such an inquiry. In 2022, the agency initiated a similar study into the prescription drug middleman industry, compelling the six largest pharmacy benefit managers to disclose information and records regarding their business practices. Additionally, two years prior, the FTC conducted a study into past acquisitions by Alphabet, Amazon, Apple, Microsoft, and Facebook (now Meta), requiring them to provide information about acquisitions that had not been reported to antitrust agencies.
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Chair Khan acknowledged that the future of AI liability regimes remains uncertain, but assured that the FTC's enforcement experience in other domains will inform their approach to this work.
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The investigation into AI heavyweights comes as regulators continue to scrutinize the practices of tech giants like Amazon. The FTC's study will shed light on the AI industry and its potential impact on competition and consumer welfare.
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