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EU Takes Aim at Metaverse and AI Giants: Can it Keep Things Competitive?

EU Takes Aim at Metaverse and AI Giants: Can it Keep Things Competitive?

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TL;DR

  • The EU has begun a review of the metaverse and AI markets to level the playing field for participants.
  • The move comes in response to the rapid growth of the sectors over the past year.
  • The Commission plans to also look into Microsoft and OpenAI deals as part of the market-wide review.

The European Commission has started conducting a comprehensive review of the metaverse and generative AI markets to ensure that both remain competitive for participants. The move comes in response to the rapid growth seen across the industries. 

VC investment in Artificial Intelligence in the EU was recorded at over €7.2 billion last year, while the European metaverse market saw as much as €11 billion.

EU Launches Review to Level the Playing Field in Next-Gen Tech

Given the growth, the European Commissioner for Competition, Margrethe Vestager, said in a statement Tuesday that it’s “fundamental that these new markets stay competitive, and that nothing stands in the way of businesses growing and providing the best and most innovative products to consumers.”

Vestager issued a Requests for Information (RFI) to participants in the respective markets, inviting them to share their opinions and experiences about the competition levels of both markets and also propose ideas on how antitrust regulations can sustain competitiveness.

“We are inviting businesses and experts to tell us about any competition issues that they may perceive in these industries whilst also closely monitoring AI partnerships to ensure they do not unduly distort market dynamics,” Vestager said. 

EU to Scrutinise Microsoft and OpenAI Deal

Presently the Commission is currently reviewing Microsoft’s investment in OpenAI, the company behind ChatGPT, to determine whether the transaction qualifies for review under EU merger regulations. 

Microsoft is reportedly the largest minority investor in OpenAI. In 2019, the tech company committed an initial $1 billion to the AI company and a multibillion-dollar investment last year. Some speculate that the EU’s review could lead to a formal investigation that could end with the deal unconditionally cleared, allowed with concessions from the companies or outrightly blocked. 

The EU further stated that its assessment of AI and metaverse markets would also cover the impacts of some agreements that have been concluded between large digital market players and generative AI developers and providers on market dynamics.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Ibiam Wayas

Ibiam is an optimistic crypto journalist. Five years from now, he sees himself establishing a unique crypto media outlet that will breach the gap between the crypto world and the general public. He loves to associate with like-minded individuals and collaborate with them on similar projects. He spends much of his time honing his writing and critical thinking skills.

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