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FORMER FTC OFFICIAL WARNS AI LABS RISK CARTEL STATUS

AI DESK2 MIN READ
FRI, SEP 18, 2026

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Neil Chilson, ex-Chief Technologist at the FTC, cautions that government-backed antitrust exemptions for AI companies could entrench monopolistic behavior under the guise of safety coordination.

As frontier AI laboratories push for greater coordination on safety standards, Chilson argues that exempting these companies from antitrust scrutiny poses a significant competitive risk. The Core Concern Chilson, now Head of AI Policy at the Abundance Institute, warns that formal antitrust exemptions could create what he describes as a "durable cartel." Rather than temporary arrangements, such exemptions might lock in market structures that prevent new competitors from entering the space and stifle innovation. Alternative Approaches Exist The former FTC technologist contends that AI companies can meaningfully collaborate on safety standards without needing government antitrust immunity. He points to existing legal frameworks as sufficient safeguards, noting that consumer-protection laws and liability statutes already provide mechanisms for addressing AI-caused harms. This position reflects a growing divide in tech policy circles. While some argue that coordinated safety practices are essential for managing AI risks, Chilson emphasizes that such coordination must operate within competitive market constraints. Regulatory Landscape The debate touches on a fundamental tension: balancing legitimate safety concerns against the need for vibrant competition. Regulators face pressure to enable collaboration on critical issues like AI alignment and safety testing, yet antitrust authorities have long viewed industry coordination with skepticism. Chilson's intervention suggests that policymakers should explore narrowly-tailored solutions rather than blanket exemptions. Information-sharing arrangements, third-party auditing, and disclosure requirements might address safety goals without requiring companies to suspend competitive behavior. Looking Forward As AI companies formalize safety initiatives, the question of regulatory structure remains unresolved. Chilson's warning signals that exemptions granted today could create precedent and institutional inertia difficult to reverse, potentially shaping AI markets for decades.

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Bloomberg Tech

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