The UK’s Competition and Markets Authority (CMA) has launched an investigation into Amazon’s $4 billion investment in AI startup Anthropic, to determine whether the deal constitutes a merger under current regulations. The probe will assess whether the investment could harm competition in the country, and the investigators have 40 working days to reach a decision.
Amazon has maintained that the investment does not grant it a majority stake in Anthropic, and therefore does not raise any competition concerns. Anthropic has also denied that the investment implies a merger, with a spokesperson stating that the company remains independent and that Amazon does not have a seat on its board or any board observer rights.
The investigation is part of a broader effort by UK regulators to curb “quasi-mergers,” where larger companies exert significant influence over startups through strategic investments or talent acquisitions. This can allow the larger company to reap the benefits of a merger without being subject to the same level of regulatory scrutiny.
The CMA is also preparing to launch an investigation into Google’s investments in Anthropic, which total $2.3 billion. Google’s investments, combined with Amazon’s, account for over half of the $10 billion Anthropic has raised since its inception in 2021.
Additionally, the CMA is examining Microsoft’s close partnership with OpenAI, which could be considered a quasi-merger. The agency is also investigating Microsoft’s hiring of the core team behind Inflection AI, a rival to OpenAI, and last month announced that it would be extending this probe into a full investigation.
