CADE clears Amazon and Anthropic AI partnership

Brazil’s Administrative Council for Economic Defense (CADE) has unanimously decided that the partnership between Amazon and Anthropic PBC does not require antitrust review. The collaboration, aimed at expanding the development of generative artificial intelligence, includes a minority investment by Amazon through two convertible notes.

Relator José Levi Mello do Amaral Jr. concluded that the arrangement does not constitute an associative contract or a joint venture. The decision noted that the acquisition of a minority stake did not meet the mandatory revenue thresholds for notification. While the companies show increasing interdependence, the tribunal found no evidence of shared budgets, joint pricing, or common management that would necessitate intervention.

Amazon argued that the investment is pro-competitive, allowing Anthropic to compete against larger firms with greater financial power. The company emphasized that the agreement is non-exclusive and that Anthropic maintains its independence. CADE noted that while this specific operation is cleared, the council retains the ability to review future changes in the relationship or new market developments that could harm competition.