Perspectives

As Artificial Intelligence (AI) continues to expand its reach across industries, competition authorities worldwide are closely monitoring AI startups, and which players are leading the market. Further, the release of DeepSeek and the recent lawsuit against Meta over copyright issues in training Llama have intensified discussions surrounding AI and large language models (LLMs). The intersection of AI and antitrust regulation is set to become a defining issue in global regulatory frameworks. With 2025 poised to be a crucial year, this piece explores the evolving landscape of AI antitrust regulation in both the United States (U.S.) and the European Union (EU), looking into key policy shifts and the regulatory outlook shaping the future of AI regulation.

EU’s Approach to AI and Competition

Over the past decade, the European Commission (EC) has taken a proactive stance in regulating the tech industry, particularly as AI and digital markets evolve at an unprecedented pace. Recognizing that traditional case-by-case antitrust investigations are no longer sufficient, the EC introduced the Digital Markets Act (DMA) in 2020 as a forward-looking regulatory framework to curb monopolistic behaviors before they take place. This legislation established clear criteria for designating “gatekeepers” – Alphabet, Amazon, Apple, ByteDance, Meta, Microsoft and Booking – and aims to ensure fair competition in digital markets.

Now, in 2025, regulators are reassessing the scope of the DMA, considering whether AI companies should fall under its provisions. As part of this broader review, last year the EC launched a call for contributions to examine competition in generative AI, virtual worlds, and other emerging technologies. This initiative highlighted the EC’s commitment to ensuring that AI development in Europe remains open, innovative, and competitive, while addressing concerns about potential market concentration. Meanwhile, the EC in September 2024 also published its annual Competition Policy Brief where it emphasized that it is actively monitoring potential anticompetitive practices connected to AI.

With the DMA now fully in effect, the EC faces increasing pressure to enforce these regulations effectively. Newly appointed EU Competition Commissioner Teresa Ribera has been tasked with ensuring “rapid and effective enforcement actions” under the DMA. She will work closely with Commissioner Henna Virkkunen, who oversees tech sovereignty within the EU. In March 2025, amid rising tensions between the EU and the U.S., Ribera and Virkkunen addressed U.S. congressional concerns, emphasizing that the DMA applies to all companies meeting the gatekeeper criteria, regardless of their headquarters’ location. This statement was a direct response to U.S. accusations that the regulation unfairly targets American companies. Given the increasingly strained transatlantic relationship over the past month, such disputes over tech regulation may intensify, further complicating diplomatic and trade relationships.

Meanwhile, following the AI Action Summit in Paris, reports suggest that France, Germany, and the Netherlands are preparing a joint proposal urging the EC to extend the DMA’s provisions to AI and cloud services. If adopted, these changes could introduce several AI firms as gatekeepers and increase scrutiny of AI-related partnerships, mergers, and acquisitions—a move that could fundamentally reshape the European AI market.

U.S. Federal Trade Commission (FTC): AI Antitrust Enforcement

In the U.S., the Federal Trade Commission (FTC), under former Chair Lina Khan, also took an assertive stance on potential anti-competitive practices in the AI sector. The agency focused on AI models trained using data from news websites, artists’ creations, and personal information, raising concerns about whether such practices violate antitrust laws. The FTC also emphasized the importance of “open-weight” models—AI systems with publicly available data—arguing that these models promote innovation and lower entry barriers for smaller companies. However, the agency cautioned against an “open first, closed later” strategy, where companies might initially provide open access to their AI models to gain market share, only to later restrict access and lock out competitors.

With the transition from the Biden administration to a second Trump administration, notable shifts in antitrust enforcement are expected. President Donald Trump has nominated Gail Slater to lead the Justice Department’s Antitrust Division. During Trump’s first term, Slater served as a special assistant to the president on technology, telecom, and cybersecurity issues. Slater inherits major antitrust cases, including ongoing litigation against Google, which began during Trump’s first term and continued under Biden. Her confirmation hearing suggests a strategic shift towards using existing regulations to address concerns related to Big Tech’s dominance. She emphasized that strong antitrust enforcement can, paradoxically, result in less government intervention by ensuring competitive markets function without the need for excessive regulation.

During her Senate hearing when asked whether she would continue ongoing antitrust cases, Slater confirmed she intends to proceed, albeit with flexibility signaling a case-by-case approach. Slater also faced pointed questions from lawmakers regarding her approach to AI regulation. Sen. Josh Hawley (R-Mo.) pressed her on data protections in response to AI companies achieving market omnipotence. Slater was noncommittal, stating: “We’re still in the very early stages of AI. As you know, it’s a nascent technology and a nascent industry. And so I wouldn’t want to make that call.”

Overall, Slater’s appointment signals a continuation of a strong antitrust enforcement, though likely with a more traditional and measured approach compared to her predecessors, as well as a friendlier stand on mergers and acquisitions.

Key Transatlantic Focus Areas for AI and Antitrust Regulation in 2025

Competition authorities in both the EU and the U.S. are examining how to approach AI markets in order to avoid any dominant behaviors. Several critical focus areas have emerged in both markets that will shape the regulatory landscape in 2025:

• Market Concentration & Dominance: Regulators are examining closely whether AI firms are controlling critical infrastructure like datasets and computing power. The EU and U.S. are reviewing AI-related mergers and acquisitions to prevent monopolistic behaviors.
• Access to AI Resources: Authorities are concerned about restricted access to foundational AI resources. The EU is looking into imposing new obligations under the DMA.
• AI Partnerships & Collusion: Deals between dominant tech firms and AI startups are under investigation for potential anti-competitive behavior.
• Exclusionary Practices & Self-Preferencing: The EU and U.S. are investigating whether major AI firms engage in anti-competitive self-preferencing and restrict third-party integrations.
• AI-Driven Consumer Harm & Algorithmic Bias: Authorities are assessing AI models for discriminatory pricing, algorithmic bias, and deceptive consumer practices.
• Mergers & Acquisitions Scrutiny: Regulators are cracking down on “killer acquisitions” and vertical mergers that could stifle competition in the AI sector.
• Open-Source vs. Proprietary AI Models: Authorities are monitoring the shift from open-weight to closed models and considering measures to ensure fair competition.
• Uncertainty in Transatlantic AI & Competition Cooperation: The future of EU-US collaboration on AI and competition policy is uncertain under President Donald Trump. Reports suggest the Trade and Technology Council (TTC), a key forum for digital and AI and competition policy coordination established under Biden, may be discontinued, raising concerns over regulatory alignment, enforcement, and information-sharing.

Conclusion

In 2025, AI is set to become a key area of focus for competition authorities worldwide. As AI technologies continue to reshape industries, regulators are determined to ensure that these markets remain competitive and innovative. Companies in the AI space will need to be prepared for evolving regulatory frameworks, as authorities continue to monitor AI partnerships, investments, and market practices. At the same time, rising tensions between the EU and the U.S. are adding another layer of complexity. Tech companies need to ensure that they do not become entangled in broader policy battles and are proactively manage regulatory risks.

With the transition of power in both the U.S. and Europe, it will be important to keep an eye on how the new European Commissioner for competition and the new FTC appointee approach these issues. The regulatory landscape will continue to evolve, and businesses must stay agile. For guidance on navigating this complex regulatory terrain, reach out to Trilligent for expert guidance on anticipating and responding to regulatory developments in the AI and antirust space.