Regulation of AI Combination with the EU

Regulation of AI Combination with the EU

Europe and the United States Take Different Approaches to Regulating AI-Driven Transactions

As the global investment in artificial intelligence (AI) continues to surge, with a record-breaking USD 252 billion invested in 2024, competition regulations and scrutiny relating to AI-driven transactions are evolving distinctly in the European Union (EU) and the United States.

European Commission (EC): The EC is taking a proactive stance in enforcing its Artificial Intelligence Act (AI Act), which became applicable in phases starting February 2025. Major provisions for General-Purpose AI (GPAI) models will take effect on August 2, 2025. On July 10, 2025, the EC released the final GPAI Code of Practice, a voluntary framework to guide AI providers on compliance with AI Act obligations. Providers who fail to adhere may face increased regulatory scrutiny. The EC has also published detailed guidelines clarifying GPAI providers’ legal obligations under the AI Act, including requirements to maintain technical documentation, publish training data summaries, and comply with EU copyright law. The EC has made it clear that there will be no "stop the clock" enforcement delay, and the AI Act’s GPAI rules are enforceable starting August 2, 2025.

US Department of Justice (DOJ) and Federal Trade Commission (FTC): While the EU is moving forward with a formal AI regulatory framework, the US DOJ and FTC are maintaining heightened scrutiny over AI-driven transactions, particularly under antitrust laws. The DOJ and FTC are collaboratively advancing enforcement policies targeting anti-competitive conduct in AI-driven markets, including potential monopolistic behavior and data-related market power abuses. Unlike the EU, the US does not have a unified AI-specific regulatory regime like the AI Act but leverages existing competition and consumer protection laws for oversight. Both agencies have expressed intent to develop clear guidelines and frameworks for AI transactions to promote fair competition and mitigate systematic risks.

Comparison of Regulatory Approaches: The EC leads with a formal, phased AI regulatory framework focused on transparency and systemic risk, which inherently addresses competition concerns. In contrast, the US DOJ/FTC apply traditional antitrust enforcement tools to AI transactions, while working toward clearer AI-specific guidance but without a codified AI act. Both axes signify increasing regulatory scrutiny over AI's market impacts in 2025.

In July 2024, the EC, the UK Competition and Markets Authority (CMA), the US DOJ, and the FTC signed a joint statement on competition in generative AI foundation models and AI products. The EC also intends to cooperate with national competition authorities to tackle deals that fall below the EU merger control thresholds. EU merger control applies to M&A deals that involve an acquisition of direct or indirect control, provided that the deal parties satisfy applicable revenue thresholds. Many AI partnerships do not result in a lasting change of control and/or the companies involved do not meet the relevant revenue thresholds, making them not always capturable by EU merger control.

The following table summarises the key differences between the EC and US DOJ/FTC approaches to AI-driven transactions:

| Aspect | European Commission (EC) | US DOJ and FTC | |--------------------------|------------------------------------------------------------|------------------------------------------------------------| | Regulatory Framework | EU AI Act with phased enforceability from Feb/Aug 2025 | Existing antitrust & consumer protection laws applied | | Specific AI Regulation | General-Purpose AI Code of Practice (voluntary but key) | No formal AI code; guidance evolving | | Key Focus Areas | Transparency, copyright, systemic risk mitigation | Anti-competitive conduct, market power, consumer protection| | Enforcement Start | August 2, 2025 (no delays) | Ongoing, evolving through case law and rulemaking | | Compliance Obligations | Detailed documentation, risk mitigation, disclosure | Investigations, evolving policy statements, potential rulemaking |

This assessment is based primarily on recent EU AI Act developments and general knowledge of US regulatory trends as of July 2025, as the search results did not contain specific recent DOJ or FTC announcements on AI competition scrutiny.

1. With the European Commission (EC) actively enforcing its Artificial Intelligence Act (AI Act), businesses in the European Union must adhere to the General-Purpose AI (GPAI) Code of Practice, which was released on July 10, 2025, and includes obligations such as maintaining technical documentation, publishing training data summaries, and complying with EU copyright law.
2. Unlike the EC's formal approach, the US Department of Justice (DOJ) and Federal Trade Commission (FTC) are maintaining scrutiny over AI-driven transactions using traditional antitrust enforcement tools, focusing on anti-competitive conduct, market power, and consumer protection.
3. On July 20, 2024, the EC, the UK Competition and Markets Authority (CMA), the US DOJ, and the FTC signed a joint statement on competition in generative AI foundation models and AI products, highlighting the ongoing collaboration between these regulatory bodies in addressing the impact of AI on business and finance.

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