Big tech companies are being pressured by regulators to reconsider their AI strategy.
Trustbusters are targeting big tech. The European Commission launched an investigation into Apple, Alphabet (Google’s parent company), and Meta (Facebook’s parent company) on March 25th. Regulators in Brussels believe that the measures implemented by these American tech giants to comply with the Digital Markets Act, a comprehensive new law aimed at ensuring fair competition in the EU’s tech industry, are inadequate.
Just days before this, the U.S. Department of Justice, along with attorneys-general from 16 states, filed a lawsuit against Apple, which could be the most ambitious case against American tech since the DoJ’s battle with Microsoft a quarter-century ago. The lawsuit alleges that Apple uses its monopoly position in smartphones to stifle innovation, suppress competitors, and discourage users from purchasing rival devices. Apple has denied any wrongdoing.
All of this scrutiny may seem focused on the past, as the cases revolve around the tech giants’ current products and business models. However, it is escalating at a time when they are positioning themselves to capitalize on the next wave of technological disruption, such as “generative” artificial intelligence (AI) similar to ChatGPT. This is causing a shift in how these tech titans approach the challenge.
2024-03-27 09:12:25
Link from www.economist.com
