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OpenAI warns EU of competition risks from Google, Microsoft, and Apple

OpenAI warns the EU that Google, Microsoft, and Apple pose serious risks to fair competition in AI as the EU investigates the tech giants’ dominance.

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By Olivia Hall

5 min read

Image Credit: Wikimedia Commons
Image Credit: Wikimedia Commons

OpenAI has urged European Union regulators to address what it considers mounting risks to competition from leading technology companies in the artificial intelligence sector.

The move follows a meeting with EU antitrust chief Teresa Ribera, where OpenAI outlined its concerns over entrenched Big Tech dominance surrounding data access and user ecosystems.

The company’s intervention comes as the AI market undergoes a rapid transformation, fueled by explosive user growth and major financial milestones.

OpenAI’s flagship product, ChatGPT, has now surpassed 800 million weekly users, doubling its base in less than a year, as it claims a record $500 billion valuation.

Why did OpenAI urge EU regulators to act?

OpenAI’s appeal to EU authorities was sparked by what the company sees as persistent barriers to fair competition. Company representatives warned that tech giants like Google, Microsoft, and Apple can “lock in” users through their control of platforms and data.

They argue that without regulatory action, competition and innovation in AI could be stifled by a handful of dominant firms.

During their September 24 meeting with Teresa Ribera, OpenAI officials presented a case that intervention was needed not only to prevent market abuses but also to sustain Europe’s ability to develop independent digital infrastructure.

The firm emphasized that inaction could lead to entrenched power in the hands of a few global players, making the market harder for new entrants to challenge.

Did you know?
The EU has fined Google over $11 billion in total across several cases, marking it as one of the most penalized tech firms in Europe.

How are Big Tech giants shaping AI competition?

Tech giants have amassed vast troves of proprietary data and possess the platforms where most users interact with AI services. OpenAI claims that Google’s scale, Microsoft’s enterprise reach, and Apple’s integration of AI tools into user devices create ecosystems that newcomers struggle to penetrate.

These giants are positioned to shape algorithms, limit access, and set the competitive terms for the entire market.

While OpenAI’s own partnerships with Microsoft and Apple have provided it with resources and reach, the company contends that the structural advantages enjoyed by Big Tech are creating new challenges.

The situation is further complicated by overlapping alliances and the blurred lines between collaborators and competitors within emerging AI ecosystems.

What drives OpenAI’s user and valuation growth?

The meteoric rise of ChatGPT and other OpenAI products highlights the accelerating global adoption of generative AI. CEO Sam Altman announced that the number of weekly users had surged from 700 million in August to over 800 million by October.

This explosive growth has driven OpenAI’s market value to unprecedented heights, reaching $500 billion after a secondary share sale that attracted significant investment from global funds.

A key force behind this momentum is OpenAI’s ongoing launch of new tools, including the video-generation platform Sora, which racked up more than one million downloads just five days after debuting in late September.

The latest funds have also allowed former and current staff to sell shares, further fueling excitement about the firm’s prospects and AI’s transformative role in industry and society.

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How is the EU responding to market concerns?

The EU has escalated its scrutiny of tech giants, exemplified by its recent €2.95 billion fine against Google for anti-competitive conduct in the ad business.

OpenAI’s complaints add to a chorus of voices calling for intervention. The European Commission is now examining whether vertically integrated platforms unfairly use their market position to control data, user access, and the evolution of AI tools.

These enforcement actions are part of the EU’s broader strategy to foster a balanced digital economy. The bloc aims to ensure startups as well as incumbents can bring innovations to market.

The issue has gained political urgency following warnings from U.S. leaders that new regulations could spur trade tension, putting technology policy at the forefront of transatlantic relations.

What comes next for global AI regulation?

Even as OpenAI’s own growth tests the boundaries of the current regulatory framework, the company remains adamant that sweeping rules are necessary to prevent the kind of data lock-in and dominance that could hinder the global development of AI.

The moment is seen as pivotal for policymakers who must define competitive standards in a field evolving faster than any before it.

While alliances between AI startups and established players continue to evolve, much now depends on regulators' ability to craft laws that address both current risks and future unknowns.

The European Union’s decisions in the coming months are likely to have a significant impact worldwide, as countries seek models to strike a balance between innovation, competition, and consumer protection.

With the stakes higher than ever, the shape of the AI economy and who controls its direction may be determined by how forcefully regulators can address market concentration and data access.

The consequences of these moves will shape not just the future of AI in Europe but across the world.

Should EU regulators intervene to ensure fair competition in artificial intelligence?

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OpenAI warns EU of competition risks from Google, Microsoft, and Apple