AI and Competition: Commission to Advise Ministry of Economic Affairs

In the past, there was no shortage of commissions on issues of artificial intelligence. Today, another one begins its work, intended to assist Federal Minister of Economic Affairs Katherina Reiche (CDU) and the federal government with its advice. “We must not only understand AI but fully embrace it with courage and a will to shape it—as an opportunity for prosperity, growth, and progress,” Reiche is quoted as saying. “Crucial for this are functioning competition and the right attitude: We must dare to play at the forefront, consistently use our strengths, and assert ourselves in global competition.” However, the Federal Republic currently seems rather distant from this, which is why expert advice might not be a bad idea.

In a press briefing, two of the three chairpersons immediately clarified what the 15-member commission could achieve—and what not. From his perspective, the focus should not primarily be on the topic from an end-user perspective, says chairman Rupprecht Podszun, a competition lawyer at the University of Düsseldorf. It's about the significance at all levels. Greater emphasis should be placed on the question of how dependencies can be broken—the Amazon cloud incident recently illustrated again how problematic such single-provider dependencies can be.

Between Treasure Hunt and Competition Law

Ko-chairman Rolf Schumann does not believe that the race regarding AI is long over. The race has begun, but it is by no means over yet, says the co-managing director of Schwarz Digits, the German IT hope that emerged from the Kaufland-Lidl universe. “We have a lot, a lot of expert knowledge in Germany,” he says. For this very reason, it would be so interesting for US hyperscalers to get access to the data of medium-sized companies. This treasure must be mined, but without giving it away, Schumann believes. The commission is to find out exactly what role competition law can play in this. Recently, a kind of enforcement duopoly emerged, where the EU Commission applied the Digital Markets Act (DMA) and the German Federal Cartel Office in Bonn applied the Act Against Restraints of Competition (GWB) in parallel but not uniformly.

It remains to be seen how much the commission, with a total of 15 members, can really contribute to the many existing and intertwined issues during and between its five meetings. The group includes a mix of scientists and entrepreneurs—such as Siemens board member Cedrik Neike, Start-up Association chairwoman Verena Pausder, and AI professor Björn Ommer—but no civil society representatives. In any case, it is not about “bringing out the funding watering can,” and the regulatory landscape as a whole is unlikely to be revised with this commission. Rather, it is about marketable solutions and individual accents, says Rupprecht Podszun. For example, indications from the commission could have a more sustainable impact in procurement law, hopes the lawyer.

Schwarz-Digits CEO: “Big Fan of Regulation”

Meanwhile, another point could lead to more intense discussions, including with Minister of Economic Affairs Katherina Reiche and her party colleague, Digital Minister Karsten Wildberger. He is a “big fan of regulation,” explains Schwarz-Digits managing director Schumann. This is because “there are hardly any technologies that do not have a dual-use problem.” However, he sees major problems in adequately regulating AI with the current legal framework: This inherently means that there is “a black box in certain areas,” which is why it can only be about regulating the results.

Three weeks before the German-French Sovereignty Summit, which recently attracted international attention and is reportedly being closely watched in Washington, both hope that Europe's states, as well as companies, will recognize the signs of the times and take the necessary steps on the AI issue. “What are we afraid of?” asks Schumann. “We have the economic power if we put it into practice.”

(mma)