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Amazon’s AI partnership with Anthropic clears UK regulatory hurdle

Anthropic's local revenue and market presence reportedly did not meet the necessary thresholds for such a probe.

Jangoulun Singsit September 30 2024

The UK's Competition and Markets Authority (CMA) has concluded that the AI partnership between Amazon and startup Anthropic will not be subjected to an in-depth investigation.

According to the CMA, the partnership does not qualify for investigation under Britain's merger regulations.

The decision was based on the finding that Anthropic's UK revenue does not exceed £70m in the country. In addition, the parties’ supply of any goods or services in the UK does not account for a 25% or more share.

The CMA in a statement said: “The CMA has decided that Amazon’s partnership with Anthropic does not qualify for investigation under the merger provisions of the Enterprise Act 2002.”

The two companies entered a partnership last September to propel advancements in generative AI.

As part of the partnership, Amazon invested up to $4bn for a minority ownership stake in Anthropic, with $1.25bn invested in September 2023 and $2.75bn in March 2024.

An Amazon spokesperson expressed their approval of the CMA's verdict, stating: "We welcome the UK's Competition and Markets Authority (CMA) decision acknowledging its lack of jurisdiction regarding this collaboration."

Based in San Francisco, US, Anthropic is an AI safety and research company that develops interpretable and steerable AI systems.

Co-founded by former OpenAI executives Dario and Daniela Amodei, the company has attracted significant investment from major tech companies.

Despite the growing scrutiny from antitrust regulators globally over deals between big tech and smaller startups, Anthropic maintains its autonomy.

The CMA also launched separate investigations into Google’s investment in Anthropic, which are still running.

Recently, clothing and accessories retailer American Eagle Outfitters initiated legal action against Amazon over trademark infringement.

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