Investigation launched into the artificial intelligence sector

The Competition Board has announced that it has begun conducting a new sector inquiry in the context of rapidly increasing technological developments in the artificial intelligence sector and the impact of these developments on markets.

According to the institution's statement, artificial intelligence technologies have moved beyond being merely a classic area of innovation; they are leading to deep-rooted transformations in the market, reshaping the economic and competitive balance. Developments in the field of generative artificial intelligence, in particular, are creating new competitive orders in data, computing capacity, and platform-based ecosystems, while updating the definition of competition.

With the sector inquiry that has been launched, the current structure of the artificial intelligence ecosystem, the decisive role of foundation models, and imbalances in access to critical resources in the value chain will be addressed. The statement pointed out that foundation artificial intelligence models create a multi-layered and strategic structure in the infrastructure, model development, and application stages. It was underscored that firms gaining early access to resources such as data, high processing power, technical expertise, and financing in these areas can quickly become influential across many layers of the ecosystem. Such dynamism can affect the general functioning of market competition and the sector structure in various ways.

NEW RISKS AND COMPETITION ISSUES IN THE SECTOR

It is stated that advanced models at the center of the artificial intelligence value chain can be integrated into a wide variety of areas and carry potential risks. The institution's statement included the expression, "For this reason, it is important to examine the conditions of access to key inputs, relationships within the ecosystem, and the effects of control over distribution channels on market structure in a holistic manner." In particular, the tendency of firms that gain an early advantage in the market to strengthen their positions may block the path for new startups and cause users to remain dependent on specific ecosystems.

Furthermore, the increase in large digital platforms integrating their existing services and products with artificial intelligence creates new problems in terms of competition law. Such integrations can bring about anti-competitive behaviors such as intra-market discrimination, exclusion, tying practices, and access restrictions. In addition to this, mergers and acquisitions taking place in the relevant sector lead to artificial intelligence technology becoming a more critical element in merger control.

INQUIRY WILL CONTRIBUTE TO POLICY AND INTERVENTION TOOLS

The main purpose of the sector inquiry is explained as being able to identify new trends emerging in the field of artificial intelligence and potential anti-competitive risks at an early stage. The data to be obtained from the inquiry will shed light on policy development processes nationwide and form the basis for strategic steps aimed at protecting competition. The Competition Authority also stated that it will continue to closely monitor the effects that artificial intelligence technology may have on the Turkish economy and sectoral competition.

News Source: 12punto