Merger Control in the AI Space – Navigating Uncharted Territories

As AI transforms industries, merger control regimes are struggling to keep pace. With the EU and US tightening scrutiny on AI-driven deals, how can businesses ensure compliance while pursuing innovation? Join us and learn about the complexities of merger control in the AI space, starting with evolving regulatory frameworks to the blurred lines between competition and cooperation.

Competition authorities, including the Federal Trade Commission (FTC), the Department of Justice (DOJ), the European Commission (EC) and the UK’s Competition and Markets Authority (CMA) have issued statements emphasizing the need to ensure competitive dynamics in the development of generative AI foundation models and AI products. The future AI market is difficult to predict in a rapidly evolving technological ecosystem. AI partnerships are currently under close scrutiny, incl. potential regulatory adjustments.

We will shed light on legal frameworks in the US and Europe and how might they be adapted to accommodate the AI sector? How are the American and European authorities proceeding, and what emerging case law and legal principles are shaping the landscape?

Our panel will explore the following topics:
• What is the EC’s current approach to AI in merger reviews, and what insights can be derived from this stance?
• What lessons can be learned from relevant case law (e.g., Google/DeepMind, Microsoft/LinkedIn) in the context of AI merger control?
• How can recent EC guidelines (e.g., Guidance on the Appraisal of Horizontal Mergers) be effectively analyzed for AI-related mergers?
• What is the UK’s CMA review process for non-controlling shareholding acquisitions, as exemplified by Microsoft/Inflection?
• The Biden Administration encouraged greater intervention by the Federal Trade Commission (FTC) and the Department of Justice (DOJ) through Merger Guidelines that lowered presumptive violation thresholds and introduced novel legal theories of harm. What are the new developments since the Trump administration took office?
• How to evaluate data access and ownership in AI-related mergers?
• How can the complexity of evaluating AI technologies and their impact on competition be addressed, considering authority stances and what are the difficulties in predicting future market developments?
• Are “acqui-hires” poised to be the next wave in digital market merger control cases, and what are the potential implications?
• What strategies ensure transparency and cooperation from merging parties in AI-related deals?
• Consolidation through acquisition? What does the EC mean by the so-called killer acquisition theory of harm; Can consolidation be achieved through exclusivity agreements in the AI sector, and what are the potential antitrust issues?
• Are AI and algorithms themselves a threat to competition? Do they facilitate or trigger collusion between independent market participants?
• How can merger control and regulation be balanced with competitiveness to foster innovation?
• What are examples of successful AI-driven mergers that have enhanced market competitiveness?
• Will upcoming regulatory amendments, such as those discussed for the EU’s Digital Markets Act (DMA), be able to address these issues?
• What best practices can guide businesses in navigating AI-related merger control, as recommended by experts?