FTC warns BIG-Tech not to kill competition in the K-area

FTC warns BIG-Tech not to kill competition in the K-area

Washington, 4/2/2023

According to Chairwoman Lina Khan, the U.S. Federal Trade Commission (FTC) closely monitor potential anti-competitive behaviors by big tech companies in the AI space.

Because machine learning relies on large amounts of data and storage, the FTC „needs to be very vigilant to make sure this isn’t just another site for big companies to get bigger,“ Khan said.

Khan made it clear at a cartel conference. That she worries that big AI companies might end up using anti-competitive tactics to maintain their dominance in the industry.

Khan warned that companies should be careful not to overstate the power of their AI products and services. „Sometimes we see claims that aren’t fully verified or don’t really reflect how these technologies work.“ As a result, AI developers could be held liable if their AI technologies are „designed to deceive,“ she added.

The FTC, which works with the US Department of Justice to enforce US antitrust laws, issued an update last month warning marketers and advertisers to keep their AI product claims „in check.“

An FTC attorney said AI is a hot marketing term and some advertisers „couldn’t stop themselves from overusing and abusing such terms.“

Finally, the FTC added that companies should consider whether their products actually use AI and know they can’t get away with „unsubstantiated claims“ that a product is AI-powered.