The Japan Fair Trade Commission (JFTC) has announced that it will conduct a fact-finding survey on the generative artificial intelligence market. This move comes as concerns grow over the potential impact of generative AI on domestic firms, with U.S. IT giants and other companies increasingly monopolizing the necessary resources for its development, including data, semiconductors, and human resources. The aim of the survey is to identify any antimonopoly regulation issues early on and promote healthy market competition.
The JFTC plans to release materials highlighting competition issues surrounding generative AI and gather information on the current state of the market through interviews with both domestic and foreign companies as well as experts. Given the rapidly changing nature of this market, the results of the survey will be made public when deemed necessary.
Developing generative AI requires access to data for learning purposes, semiconductors for processing that data, and highly skilled human resources. However, these development resources are reportedly concentrated among U.S. IT giants such as Google LLC, Microsoft Corp., and Meta Platforms Inc. In fact, some data suggests that Nvidia Corp., a U.S.-based company, holds a 90% share in the AI-related semiconductor market.
The JFTC has identified specific areas for investigation in this survey. These include examining cases where large companies in dominant positions restrict access to semiconductors and data in order to prevent new entrants from gaining opportunities (known as restriction of use), as well as investigating instances where talented personnel are transferred from startups to larger companies through alliances or other means (known as sequestering of human resources). The survey will also look into preferential treatment by companies providing generative AI services whereby they use their own products and services extensively based on results generated through their processes.
Antitrust authorities overseas are also increasing their scrutiny of the generative AI market. In July, authorities from countries including the United States and European Union issued a joint statement expressing their commitment to addressing competition risks cooperatively.
this fact-finding survey by JFTC aims to shed light on potential antimonopoly issues within Japan’s generative AI market while promoting fair competition among industry players both domestically and internationally.
