Big Tech market power will cause UK to lose AI race, think tank warns
Britain's market watchdog criticized for not creating the conditions for competition to thrive
A new report from the Institute for Public Policy Research (IPPR) warns that the immense market power of major technology companies is hindering the UK's ability to benefit from artificial intelligence (AI) and risks the nation losing the AI race to other countries. The report highlights that a limited number of firms dominate the digital infrastructure crucial to the UK's economy and that this concentration of power may lead to AI becoming monopolized, much like in other markets.
A survey conducted for the report found that 79 percent of UK businesses utilizing digital platforms are concerned about Big Tech using their dominance to limit competition, a greater concern than access to finance or talent. The major tech giants scrutinized in the report include Google, Microsoft, and Amazon, which control significant portions of UK internet searches, cloud services, and business software market shares respectively.
The report criticizes the UK's Competition and Markets Authority (CMA) for failing to curb the dominance of these global tech firms, citing senior officials resigning or being sacked from the regulator and describing a collapse in ministerial support. The CMA has been accused of allowing Big Tech to maintain their position in British technology markets, issuing voluntary commitments instead of binding rules in response to evidence of harm.
The IPPR suggests the government should develop a more proactive, rapid, and bold approach to enforcing competition rules, emphasizing the need for interventions that genuinely boost growth and sovereignty. The stakes are further elevated with the rapid growth of AI, central to the UK's plans for future growth as outlined in the AI Opportunities Action Plan.
The report warns that if AI becomes monopolized or oligopolized, UK investment in home-grown AI firms could be undermined, diminishing the country's potential for growth and financial returns. The IPPR's senior research fellow, Roa Powell, stresses that Big Tech's dominance is impeding British businesses, limiting competition, and making it harder for new firms to innovate and grow.
However, the CMA has defended its actions, stating that it has taken strategic market status designations, implemented targeted interventions, and is pursuing further actions in Google search, mobile ecosystems, Microsoft's business software ecosystem, and AI-enabled products.
Written by urgent.news from The Register Science's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
