FTC Demands Investigation into AI Companies' Book Acquisition Methods

The U.S. Federal Trade Commission (FTC) has been urged to investigate the book acquisition methods of AI companies. Over ten civic organizations sent a letter to the FTC calling for this investigation. The letter included groups such as the Demand Progress Education Fund, the Consumer Federation of America, and the Institute for Local Self-Reliance. These organizations argue that some AI companies' methods of purchasing, scanning, and discarding books diminish competitors' access to original materials. The issue at hand is not the AI training itself, but the methods of material acquisition, and they demand that the FTC consider this as an 'unfair competitive practice.' The case of Anthropic serves as a backdrop, as this company is reported to have purchased millions of books, removed their physical bindings, and scanned them. The FTC's investigation is a procedure that could broaden the regulatory intersections of AI services and data utilization, potentially expanding beyond copyright consent and compensation issues to include competition restrictions and market entry barriers. This matter emphasizes accountability in data procurement methods over competition in AI service performance, and similar issues may apply to domestic AI companies and content providers. The FTC has not yet disclosed whether it will officially initiate an investigation or which companies will be targeted.

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