Brief

Summary:

The Federal Trade Commission (FTC) issued orders to five companies (Alphabet, Inc., Amazon.com, Inc., Anthropic PBC, Microsoft Corp., and OpenAI, Inc.) requiring them to provide information about their investments and partnerships involving generative AI companies and major cloud service providers. The FTC's 6(b) inquiry aims to scrutinize these corporate partnerships and investments to better understand their impact on the competitive landscape. The agency is seeking information on the practical implications of these partnerships, analysis of their competitive impact, and competition for AI inputs and resources. The companies have 45 days to respond to the order. The FTC's mission is to promote competition, protect consumers, and educate the public.

Enforcement

We enforce federal competition and consumer protection laws that prevent anticompetitive, deceptive, and unfair business practices.

View Enforcement

,

Search or browse
the Legal Library

Find legal resources and guidance to understand your business responsibilities and comply with the law.

Browse legal resources

,

Take action

,

Competition Matters

,

John Newman & Amy Ritchie, Bureau of Competition

,

,

Policy

We work to advance government policies that protect consumers and promote competition.

View Policy

,

Search or browse
the Legal Library

Find legal resources and guidance to understand your business responsibilities and comply with the law.

Browse legal resources

,

Take action

,

Technology Blog

,

The Office of Technology

,

,

Advice and Guidance

Learn more about your rights as a consumer and how to spot and avoid scams. Find the resources you need to understand how consumer protection law impacts your business.

,

Take action

,

Consumer Advice

,

Business Guidance

,

Servicemembers:
Your tool for financial readiness

Visit militaryconsumer.gov

,

Get consumer protection basics, plain and simple

Visit consumer.gov

,

Learn how the FTC protects free enterprise and consumers

Visit Competition Counts

,

Looking for competition guidance?

Competition Guidance

,

News and Events

,

,


,

Sign up for the latest news

Follow us on social media

         

,

About the FTC

Our mission is protecting consumers and competition by preventing anticompetitive, deceptive, and unfair business practices through law enforcement, advocacy, and education without unduly burdening legitimate business activity.

Learn more about the FTC

,

Looking for legal documents or records? Search the Legal Library instead.

,

Looking for legal documents or records? Search the Legal Library instead.

,

For Release

,

Agency Issues 6(b) Orders to Alphabet, Inc., Amazon.com, Inc., Anthropic PBC, Microsoft Corp., and OpenAI, Inc.

,

,

The Federal Trade Commission announced today that it issued orders to five companies requiring them to provide information regarding recent investments and partnerships involving generative AI companies and major cloud service providers.

The agency’s 6(b) inquiry will scrutinize corporate partnerships and investments with AI providers to build a better internal understanding of these relationships and their impact on the competitive landscape.  The compulsory orders were sent to Alphabet, Inc., Amazon.com, Inc., Anthropic PBC, Microsoft Corp., and OpenAI, Inc.

“History shows that new technologies can create new markets and healthy competition. As companies race to develop and monetize AI, we must guard against tactics that foreclose this opportunity, “said FTC Chair Lina M. Khan. “Our study will shed light on whether investments and partnerships pursued by dominant companies risk distorting innovation and undermining fair competition.”

The FTC issued its orders under Section 6(b) of the FTC Act, which authorizes the Commission to conduct studies that allow enforcers to gain a deeper understanding of market trends and business practices. Findings stemming from such orders can help inform future Commission actions.

Companies are deploying a range of strategies in developing and using AI, including pursuing partnerships and direct investments with AI developers to get access to key technologies and inputs needed for AI development. The orders issued today were sent to companies involved in three separate multi-billion-dollar investments: Microsoft and OpenAI, Amazon and Anthropic, and Google and Anthropic. The FTC’s inquiry will help the agency deepen enforcers understanding of the investments and partnerships formed between generative AI developers and cloud service providers.

The FTC is seeking information specifically related to:

  • Information regarding a specific investment or partnership, including agreements and the strategic rationale of an investment/partnership.
  • The practical implications of a specific partnership or investment, including decisions around new product releases, governance or oversight rights, and the topic of regular meetings.
  • Analysis of the transactions’ competitive impact, including information related to market share, competition, competitors, markets, potential for sales growth, or expansion into product or geographic markets.
  • Competition for AI inputs and resources, including the competitive dynamics regarding key products and services needed for generative AI.
  • Information provided to any other government entity, including foreign government entities, in connection with any investigation, request for information, or other inquiry related to these topics.

The companies will have 45 days from the date they receive the order to respond.

The Commission voted 3-0 to issue the Section 6(b) orders and conduct the study of AI investments and partnerships.

,

The Federal Trade Commission works to promote competition, and protect and educate consumers. You can learn more about how competition benefits consumers or file an antitrust complaint.  For the latest news and resources, follow the FTC on social mediasubscribe to press releases and read our blog.

,

Office of Public Affairs

,

415-848-5121

Highlights content goes here...

Summary:

The Federal Trade Commission (FTC) has issued orders under Section 6(b) of the FTC Act to five companies – Alphabet, Inc., Amazon.com, Inc., Anthropic PBC, Microsoft Corp., and OpenAI, Inc. – to provide information regarding their recent investments and partnerships involving generative AI companies and major cloud service providers.

The FTC’s investigation aims to gain a deeper understanding of these relationships and their impact on the competitive landscape. The orders require the companies to provide information on their investments, partnerships, and competitive strategies, including the practical implications of their partnerships, analysis of their competitive impact, and information related to market share, competition, and potential for sales growth.

The FTC’s inquiry will focus on the investments and partnerships formed between generative AI developers and cloud service providers, including the strategic rationale of the investments, decisions around new product releases, and oversight rights. The agency is seeking information on the competitive dynamics regarding key products and services needed for generative AI and any information provided to other government entities, including foreign government entities, in connection with any investigation or inquiry.

The companies will have 45 days from the date they receive the orders to respond. The FTC’s goal is to promote competition, protect consumers, and educate them on the benefits of competition. The Commission voted 3-0 to issue the Section 6(b) orders and conduct the study of AI investments and partnerships.

The FTC’s actions demonstrate its efforts to ensure that new technologies do not stifle competition and innovation, but rather promote healthy competition and benefit consumers. As FTC Chair Lina M. Khan stated, “History shows that new technologies can create new markets and healthy competition. As companies race to develop and monetize AI

Federal Trade Commission

Quick Insight
RADA.AI
RADA.AI
Hello! I'm RADA.AI - Regulatory Analysis and Decision Assistance. Your Intelligent guide for compliance and decision-making. How can i assist you today?
Suggested

Form successfully submitted. One of our GRI rep will contact you shortly

Thanking You!

Enter your Email

Enter your registered username/email id.

Enter your Email

Enter your email id below to signup.

Enter your Email

Enter your email id below to signup.
Individual Plan
$125 / month OR $1250 / year
Features
Best for: Researchers, Legal professionals, Academics
Enterprise Plan
Contact for Pricing
Features
Best for: Law Firms, Corporations, Government Bodies