LONDON—The United Kingdom’s Competition and Markets Authority (CMA) has launched a formal investigation into Google’s partnership with artificial intelligence startup Anthropic, raising concerns about the potential for market dominance in the rapidly evolving AI sector.

The CMA announced Thursday that it has gathered enough information to warrant an initial probe into the deal, which could result in further scrutiny if competition concerns are confirmed. The watchdog has until December 19 to determine whether to approve the partnership or escalate the investigation to a more detailed phase.

“Google is committed to building the most open and innovative AI ecosystem in the world,” the tech giant said in response to the probe. “Anthropic is free to use multiple cloud providers and does, and we don’t demand exclusive tech rights.”

The investigation centers around Google’s significant investment in Anthropic, a San Francisco-based startup founded by siblings Dario and Daniela Amodei, former senior researchers at OpenAI, the creator of ChatGPT. Since its founding in 2021, Anthropic has gained prominence for its focus on creating safer and more reliable AI models, including its popular chatbot, Claude. Google reportedly invested billions of dollars in the startup as part of its push to remain at the forefront of the AI industry.

Anthropic has expressed its willingness to cooperate fully with the CMA, assuring regulators that its partnership with Google does not compromise its independence. “We are an independent company, and none of our strategic partnerships or investor relationships diminish the independence of our corporate governance or our freedom to partner with others,” the startup said in a statement.

This latest investigation is part of a broader effort by the CMA to scrutinize large-scale investments in the booming AI industry. Last month, the regulator approved Anthropic’s $4 billion deal with Amazon, allowing Amazon Web Services (AWS) to provide cloud infrastructure for Anthropic’s AI developments. The CMA has also greenlit deals involving Microsoft and AI startups Inflection and Mistral.

With the AI landscape rapidly expanding and tech giants like Google, Amazon, and Microsoft racing to secure their footholds, regulators are increasingly concerned about ensuring fair competition. The CMA’s investigation into the Google-Anthropic partnership reflects growing scrutiny over the consolidation of power in the AI sector, as companies pour billions into developing next-generation AI tools and platforms.

Google’s deal with Anthropic is a key piece of the company’s broader AI ambitions, as it looks to rival companies like OpenAI and Microsoft. While the CMA’s investigation does not automatically imply wrongdoing, the probe signals heightened regulatory scrutiny on large tech firms looking to dominate the AI landscape.

As the December 19 deadline approaches, all eyes will be on the CMA’s decision, which could set the tone for how tech giants’ AI investments are regulated in the U.K. and potentially across the globe.

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