Exeter researchers warn EU digital rules could give big tech an AI advantage

A group of Exeter-based experts has warned that recent European guidance on digital markets and data protection could give major tech companies an unfair advantage in artificial intelligence (AI), while smaller firms struggle to compete.

The Shaping Competition in the Digital Age (SCiDA) team, which includes University of Exeter researchers Oles Andriychuk, Pavlina Hubkova, and Anush Ganesh, has responded to the European Commission’s consultation on the Joint Guidelines on the Digital Markets Act (DMA) and the General Data Protection Regulation (GDPR). 

The guidelines are intended to help enforce EU rules on competition and data use, but the researchers say they are “largely silent” on how AI services should be trained and used, leaving regulators uncertain and creating potential loopholes for dominant firms.

“Without clear rules, gatekeeper companies can freely combine massive datasets to train AI models that outcompete smaller rivals,” said Professor Rupprecht Podzsun of Heinrich Heine University, a co-author of the study. 

READ NEXT: Exeter council leader responds to Government request on delaying local elections

“Meanwhile, other companies cannot access equivalent data, creating structural barriers to innovation.”

The team warns that the lack of standards around anonymity and data sharing allows large firms to claim compliance with privacy rules while still effectively bypassing other legal obligations. 

Professor Andriychuk added: “The guidelines do not define how data should be shared for AI development. Gatekeepers have almost total control, while smaller competitors face high hurdles to access the data they need to build AI models.”

The researchers’ submission highlights the tension between the DMA, which is designed to prevent market dominance and encourage competition, and GDPR, which protects personal data. 

They argue that guidance should make it explicit that companies must enable fair access to data for AI development, while maintaining privacy safeguards.

Dr Hubkova, another Exeter-based member of the SCiDA team, said the current rules risk being outdated if regulators focus solely on platforms rather than the broader digital economy. 

“A more flexible approach is needed, one that addresses the evolving structures of power in AI-driven markets and ensures competition is not stifled,” she said.

The researchers say without clearer rules, dominant firms could strengthen their position in digital markets, giving them privileged access to the data needed to develop advanced AI models. 

This could create a feedback loop where large companies continue to gain advantage, while smaller businesses and new entrants face barriers to innovation.

The SCiDA team is calling on the European Commission to clarify how AI training should be addressed in the DMA, to require that cross-company data sharing is possible with appropriate consent, and to provide clear enforcement standards. 

They say these steps are necessary to prevent monopolistic practices and support a competitive, innovative AI sector.

The consultation response is co-authored by experts from the University of Exeter, Heinrich Heine University in Düsseldorf, and Leiden University in the Netherlands. 

It represents one of the first detailed UK-based analyses of how new EU digital rules could affect AI competition in practice.