Computer & Communication Industry Association
PublishedMarch 11, 2024

Competition in Generative AI: CCIA Europe Comments on Market’s State of Play

The Computer & Communications Industry Association (CCIA Europe) submitted its response to the European Commission’s call for contributions on generative artificial intelligence (AI) and competition today. 

The submission includes an executive summary, as well as a 35-page study on generative AI and competition conducted by Copenhagen Economics that was commissioned by CCIA Europe. In its contribution, CCIA Europe highlights that competition in the European generative AI market is dynamic, with diversified business models and products, as well as a number of new entrants. 

However, the Association draws attention to partnerships between certain large cloud providers and AI startups. Depending on their design, such agreements may give rise to competition concerns, in particular when combined with leveraging behaviours where large players already possess a certain degree of market power.

CCIA Europe emphasises that any potential competition-related concerns should be assessed within the context of the EU’s competition law framework or the Digital Markets Act. Indeed, (preemptive) legislative or regulatory measures could hinder innovation and consumer choice in the generative AI market. What is needed instead is continuous monitoring of the market and thorough assessment of how existing laws impact its dynamics.