BRUSSELS – European Union antitrust regulators are reportedly intensifying their preliminary probes into major technology companies designated as “gatekeepers” under the landmark Digital Markets Act (DMA), focusing keenly on potential violations stemming from their integration of proprietary artificial intelligence (AI) models into core services.
The inquiries signal a significant new front in the EU’s efforts to curb the power of dominant online platforms, directly addressing how the burgeoning field of AI intersects with existing competition regulations. Sources close to the matter indicate that the European Commission, the bloc’s executive arm and chief antitrust enforcer, is particularly concerned that the vast datasets and entrenched platform dominance held by these tech giants could unfairly tilt the playing field in favour of their own AI offerings.
This potential leveraging of market power raises concerns about hindering smaller, innovative rivals and limiting the choices available to users in rapidly evolving digital markets, potentially undermining the DMA’s core objective of fostering fair and contestable online spaces.
The Digital Markets Act Framework
Enacted in 2022 and fully operational since March 2024, the DMA aims to prevent large online platforms with significant market power – deemed “gatekeepers” – from imposing unfair conditions on businesses and end-users. The legislation sets out a list of specific do’s and don’ts for designated companies, which include some of the world’s largest tech firms like Alphabet (Google), Amazon, Apple, Meta, Microsoft, and ByteDance (TikTok).
The Act is designed to tackle anti-competitive practices proactively, contrasting with traditional antitrust investigations that often take years to conclude after harm has occurred. By identifying specific behaviours deemed unfair, the DMA seeks to ensure that gatekeepers provide a level playing field for third parties operating on their platforms and offer greater choice and control to users.
At the Heart of the Probe: AI Integration
The current focus on AI integration highlights how quickly the regulatory landscape must adapt to technological advancements. Gatekeepers are increasingly embedding sophisticated AI models – developed using their extensive resources and proprietary data – into their core platform services, such as search engines, cloud computing offerings, social media feeds, and operating systems.
For instance, concerns could arise if a search engine prioritises results generated by its own AI over those from rival AI services or traditional websites, or if a cloud provider bundles its AI development tools in a way that makes it difficult for competitors to offer alternative AI solutions on its infrastructure. Similarly, integrating AI assistants deeply into operating systems or hardware could potentially disadvantage competing AI services or applications.
Regulators are reportedly examining whether the methods used to integrate these AI capabilities potentially violate DMA obligations related to self-preferencing, tying or bundling of services, or preventing effective interoperability.
Concerns Over Unfair Advantage
A central theme of the preliminary probes is the perceived unfair advantage that gatekeepers may derive from their unique position. Their access to massive, proprietary datasets generated by billions of users interacting with their diverse services provides an unparalleled training ground for AI models. This data advantage, combined with control over key distribution channels (like app stores, search results, or operating system defaults), creates a formidable barrier to entry for smaller AI developers.
Furthermore, regulators may be scrutinising whether the integration process gives the gatekeepers’ own AI services privileged access to data, features, or users on their platforms compared to what is available to third parties. This could stifle innovation by making it exceedingly difficult for competing AI applications or services to gain traction, ultimately limiting consumer choice and potentially leading to higher prices or lower quality over time.
Sources suggest the probes are exploring whether these practices constitute an abuse of the gatekeepers’ status, leveraging their dominance in one area (e.g., search, social media, mobile) to gain an unfair edge in the rapidly growing AI market.
Potential Implications and Next Steps
These preliminary probes are crucial first steps. They could lead to formal investigations if the European Commission finds sufficient evidence of potential non-compliance with the DMA. Formal investigations carry significant weight and can result in substantial penalties.
Under the DMA, companies found to be in breach of their obligations can face fines of up to 10% of their total worldwide annual turnover. For repeat offenders, this can escalate to 20%. The Commission also has the power to impose behavioural or even structural remedies to ensure compliance, though such measures are typically reserved for serious and persistent infringements.
The regulatory challenge is compounded by the dynamic nature of AI technology. Regulators must not only understand the current state of AI integration but also anticipate future developments and their potential impact on competition. The outcome of these probes and any subsequent investigations could set important precedents for how AI is developed and deployed by dominant companies globally.
Conclusion
The European Union’s intensifying scrutiny of how tech gatekeepers integrate AI under the DMA underscores the critical intersection of emerging technologies and established competition law. These probes reflect a growing determination in Brussels to ensure that the development and deployment of powerful AI tools by dominant platforms do not undermine fair competition, stifle innovation, or limit consumer choice. The results of these investigations will be closely watched by the tech industry and regulators worldwide, shaping the boundaries of acceptable conduct for digital giants in the age of artificial intelligence.
