The head of Germany’s Federal Cartel Office, Andreas Mundt, has issued a stark warning regarding potential competition distortions within the burgeoning artificial intelligence sector, highlighting the significant advantage held by dominant tech corporations. In an interview with “Handelsblatt”, Mundt expressed concern that the concentrated power of “Big Tech” poses a systemic threat to fair market dynamics.
Mundt specifically pointed to the control exerted by companies like Google and Meta across critical infrastructure – cloud computing, data access and capital – as particularly problematic. Google’s dominance in internet search and YouTube, coupled with Meta’s expansive social media platforms, grants them unparalleled access to vast datasets, fueling a cycle of consolidation and limiting genuine competition. While Mundt acknowledges a degree of rivalry exists within the foundational “base models” that underpin applications like ChatGPT and NotebookLM, he emphasized that this is a limited sphere.
Addressing the challenge, Mundt called for a fundamental reassessment and improvement of the economic framework within Europe. He conceded that while competition law plays a vital role, it is not a panacea. He specifically advocated for the establishment of a Capital Markets Union within the EU, arguing that it would significantly ease financing for European startups, leveling the playing field against better-capitalized rivals.
However, Mundt’s warning extends to the regulatory response itself. He cautioned that the European Union’s proposed AI Act, intended to foster trust and mitigate risks associated with the technology, carries the unintended consequence of solidifying existing market structures. He drew a parallel to the General Data Protection Regulation (GDPR), which while valuable in principle, disproportionately burdens smaller companies, creating a barrier to entry that favors larger, resource-rich organizations. Mundt’s comments underscore a critical debate: how to regulate AI to promote innovation and fairness without inadvertently reinforcing the power of existing industry giants, potentially stifling future competition and innovation across Europe.
