AI, Antitrust and Privacy

Maurice Stucke
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Maurice Stucke: University of Tennessee Winston College of Law

No inetwp236, Working Papers Series from Institute for New Economic Thinking

Abstract: Generative artificial intelligence (AI) is reshaping how companies profile individuals, create and target ads, and influence behavior—often in ways that undermine privacy, autonomy, and democracy. This article explores a critical but overlooked question: how AI affects the relationship between competition and privacy. Increased competition in the AI supply chain may seem like a solution to Big Tech's dominance, but when firms are rewarded for surveillance and manipulation, more competition can actually make things worse. Drawing on recent market trends and twenty state privacy laws, the Article shows how the existing legal frameworks-even those designed to protect privacy—fall short and may unintentionally entrench the power of few data-opolies. It argues that privacy and competition must be addressed together, not in silos, and offers specific legislative reforms to help align business incentives with public interests. Without stronger guardrails, AI risks accelerating a race to the bottom—fueled not only by powerful technologies, but by well-intentioned, but flawed policies.

Keywords: Antitrust; privacy; monopolies; data; artificial intelligence (search for similar items in EconPapers)
JEL-codes: K21 K24 L40 L41 L50 O33 (search for similar items in EconPapers)
Pages: 73 pages
Date: 2025-06-25
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Persistent link: https://EconPapers.repec.org/RePEc:thk:wpaper:inetwp236

DOI: 10.36687/inetwp236

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