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AI, Antitrust and Privacy

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  • Maurice E. Stucke

    (University of Tennessee Winston College of Law)

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.

Suggested Citation

  • Maurice E. Stucke, 2025. "AI, Antitrust and Privacy," Working Papers Series inetwp236, Institute for New Economic Thinking.
    • Handle: RePEc:thk:wpaper:inetwp236
    DOI: 10.36687/inetwp236
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    JEL classification:

    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • K24 - Law and Economics - - Regulation and Business Law - - - Cyber Law
    • L40 - Industrial Organization - - Antitrust Issues and Policies - - - General
    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices
    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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