**Washington, DC | August 7, 2025 — **A coalition of twelve public interest groups, led by NextGen Competition and Public Citizen, today urged the Federal Trade Commission (FTC) to launch a full investigation into Meta’s investment in Scale AI. The groups’ letter argues that the deal amounts to a de facto vertical acquisition, deliberately structured to exploit gray areas in traditional merger law.
 
“The investment in Scale AI includes all the anti‑competitive hallmarks typical of Big Tech’s minority stakes in generative AI firms,” said Sumit Sharma, NextGen Competition Executive Director. “Here, the harms extend well beyond model development and aim squarely at cementing Meta’s dominance in adjacent markets such as social media and surveillance advertising. Meta already faces an antitrust lawsuit in these markets. Do we really want Mark Zuckerberg and Meta to have even more control over our information ecosystem?”
 
The groups argue that Meta’s 49% stake in Scale AI, combined with its poaching of founder and CEO, Alexandr Wang, raises serious competition concerns by effectively granting Meta control over the company and its intellectual property.
 
_Instead of competing by developing its own data annotation capabilities, Meta has moved to absorb the market leader. This action neutralizes Scale AI's role as an independent, neutral resource for the entire industry and transforms it into a captive asset for Meta's exclusive benefit._
 
“Meta’s $14.8 billion grab is a blatant attempt to control a competitor, lock up scarce AI infrastructure, and poach top talent all while squeezing out rivals,” said J.B. Branch, Big Tech Accountability Advocate at Public Citizen. “These backdoor deals are deliberately structured to dodge regulatory scrutiny, inching as close to a merger as possible without calling it one. Google, Amazon, Microsoft, and Meta have all participated in these ‘acqui-hires’ which are just anticompetitive behavior disguised as investment. The FTC must investigate this growing trend to protect consumers before the damage is done.”

"Meta’s reckless monopolization of social media through its ‘buy, don’t compete’ strategy has stifled innovation, limited consumer choice, and done lasting damage to our society and democracy," said Morgan Harper Director of Policy and Advocacy for AELP. "Now it's running the same playbook in AI, vertically integrating its power through de-factor acquisitions of smaller suppliers. If the Trump FTC is serious about reining in Big Tech monopolies, it must prevent Meta from using its power to entrench its dominance in the next generation of technology."

NextGen Competition and Public Citizen were joined by the following other groups: The Tech Oversight Project, Tech Justice Law Project, Revolving Door Project, UltraViolet, Consumer Federation of America, Open Markets Institute, American Economic Liberties Project, Institute for Local Self-Reliance, Public Knowledge, and Demand Progress Education Fund. A copy of the letter filed with the FTC is available [here](https://drive.google.com/file/d/1JI8TAlzq5meftnIRPn_IUTlWMzNcRmYR/preview).
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**NextGen Competition** is on a mission to create a fair and competitive technology ecosystem that empowers consumers, workers, and small businesses by supporting robust enforcement of our antitrust laws and policies. Our approach enables many independent technology companies to innovate, and compete, and to offer differentiated services. It also rectifies the profound imbalance of power that allows the largest technology firms to unilaterally set terms and conditions for everyone, and use our data, and capture our attention without meaningful constraints. Additional information is available at <https://nextgencomp.tech>.
 
**Public Citizen **is a nonprofit consumer advocacy organization that champions the public interest in the halls of power. We defend democracy, resist corporate power, and fight to ensure that government works for the people – not big corporations. Founded in 1971, we now have 500,000 members and supporters throughout the country.


Groups warn $14.3 billion deal grants Meta de facto control over critical AI data infrastructure and undermines competition in generative AI.

Public Interest Coalition Urges FTC to Investigate Meta’s Acquisition of Scale AI

The groups called on OpenAI’s board to publish detailed information on how the restructuring will change its legal duties to humanity and to affirm, in writing, that it will preserve robust public-interest protections. Anything less betrays both the spirit and the letter of its founding charter.


NextGen was proud to join over 100 academics, organizations, and public figures calling for OpenAI to offer greater transparency in its upcoming restructuring.

An Open Letter to OpenAI

NextGen Competition joins other public interest organizations call on the FTC to resist political pressure and preserve the agency’s ability to hold powerful corporations accountable.

Coalition Urges FTC to Uphold Consumer Protections and Market Integrity

“The investment in Scale AI includes all the anti‑competitive hallmarks typical of Big Tech’s minority stakes in generative AI firms,” said Sumit Sharma, NextGen Competition Executive Director. “Here, the harms extend well beyond model development and aim squarely at cementing Meta’s dominance in adjacent markets such as social media and surveillance advertising. Meta already faces an antitrust lawsuit in these markets. Do we really want Mark Zuckerberg and Meta to have even more control over our information ecosystem?”


NextGen’s Executive Director, Sumit Sharma, sent a letter to the House Judiciary Subcommittee on Administrative State, Regulatory Reform, and Antitrust underscoring the transformative potential of generative AI-based Foundation Models and advocating for strong policy guardrails to minimize harms like privacy breaches, misinformation, and malicious uses.

Protecting Innovation and Competition in AI: NextGen’s Letter to House Judiciary Subcommittee

NextGen Competition join advocates calling for antitrust enforcement action against Nvidia’s anticompetitive business practices.

Coalition Urges State Attorneys General to Investigate Nvidia

The groups argue that Meta’s 49% stake in Scale AI, combined with its poaching of founder and CEO, Alexandr Wang, raises serious competition concerns by effectively granting Meta control over the company and its intellectual property. 


Groups support FTC inquiry into Amazon's hiring of senior executives and close to 66% of the employees of Adept.

Competition Advocates Press FTC to Tackle AI Talent Poaching

Demand Progress organized a letter to Assistant Attorney General Jonathan Kanter commending the Department of Justice’s reported plans to open an antitrust investigation into Nvidia, the market-leading supplier of chips that provide the technological underpinning for nearly all AI research and development. The coalition recommends that "such a company deserves the most aggressive scrutiny that the Department of Justice can bring to bear."


NextGen Competition joins a coalition of groups concerned about NVIDIA's ability to crowd out competitors, set global pricing

Advocates Back DOJ Investigation into NVIDIA's Antitrust Tactics

NextGen Competition joins other organizations in asking Vice President Harris to publicly signal support for Lina Khan’s leadership of the FTC, competitive markets, and a pro-consumer agenda.


NextGen Competition joins others in asking Vice President Harris to keep FTC Chair Lina Khan, emphasizing pro-competition and marketplace choice

Coalition Urges Harris to Ignore Donor Requests to Remove FTC Chair

The Tech Oversight Project organized a letter to House and Senate Judiciary Committee and Antitrust Subcommittee leaders calling on them to investigate Big Tech platforms -- including Apple, Amazon, Google, and Microsoft -- for deleting communications and concealing conversations from FTC investigators. The groups call on the Committees to hold hearings into the issue.


NextGen Competition Joins Groups Seeking a Congressional Investigation into Tech Company Employees Encrypting or Deleting Internal Messages to Destroy Evidence in Antitrust Cases

Congress asked to probe tech companies hiding antitrust evidence

As advocates of combating anti-competitive behavior and protecting consumer privacy, we applaud reports that the Federal Trade Commission (FTC) will probe Walmart’s dangerous acquisition of smart TV operator Vizio. Walmart’s history of anticompetitive behavior and exploitation of consumer data makes its effort to acquire Vizio—whose products are known to collect hoards of data on viewers without their consent—concerning on competition and privacy grounds.


NextGen Competition joins others in supporting review into privacy implications of Walmart-Vizio deal

Advocates Urge FTC to probe Walmart’s dangerous acquisition of Vizio

Apple holds a dominant position in various consumer electronics sectors, making it one of the top purchasers of electronic components globally. TSMC stands as the premier foundry for silicon chips, crafting cutting-edge chips essential for AI, data centers, and mobile and wireless technologies. Last summer's reports [highlighted](https://arstechnica.com/gadgets/2023/08/report-apple-is-saving-billions-on-chips-thanks-to-unique-deal-with-tsmc/) that as TSMC's principal client, Apple has utilized its purchasing influence to obtain favorable pricing and exclusive access to TSMC’s entire supply of the latest 3nm chips for one year. This exclusivity poses challenges for competitors, who are forced to equip their upcoming smartphone models with inferior technology, potentially impacting their ability to compete with Apple's iPhone.


NextGen Competition joined a broad coalition of allies calling for a Department of Justice investigation into Apple’s anticompetitive dealings with chip maker TSMC. 

Tech Accountability and Antitrust Advocates Support DOJ Investigation in Apple Supply Chain Abuse

Privacy and competition advocates, including the Demand Progress Education Fund, NextGen Competition, Open Markets Institute, and Electronic Privacy Information Center, are urging the FTC and DOJ to investigate Walmart’s $2.3 billion acquisition of TV-maker Vizio. The coalition of 19 groups is calling on federal antitrust enforcers to scrutinize the proposed acquisition.


NextGen joins 18 others in opposing Walmart's takeover of Vizio.

Privacy and Competition Advocates Call on FTC and DOJ to Probe Walmart's $2.3 Billion Vizio Acquisition

A coalition of antitrust advocacy, industry and tech accountability organizations called on the Federal Communications Commission to investigate the recent debacle around Apple's ban on Beeper Mini.


NextGen Competition joined the American Economic Liberties Project, Y Combinator, Tech Oversight Project, and others in calling for an FCC investigation

Coalition Supports Calls on FCC to Investigate Apple’s Beeper Mini Ban

NextGen Competition joined public interest groups urging regulators to take coordinated action to crack down on the Google's anticompetitive practices. 

The letter reads, "Google has routinely exploited this dominance to harm consumers and competitors alike, all while undermining users’ civil liberties and democratic rights in the process."

"Unfortunately, the trial has not deterred Google from taking several brazen high-profile actions designed to further entrench its monopoly even since the trial began in September."


Public Interest Groups call on FTC & FTC to Use Full Powers to Bring Google into Compliance with the Law

Google moving ‘full steam ahead’ to cement search monopoly despite DOJ trial

NextGen Competition led a letter applauding the Federal Trade Commission’s investigation into generative AI investments by Big Tech companies, including Alphabet, Amazon, and Microsoft. The investigation follows similar ones announced in the European Union and United Kingdom.

These investigations stem from Microsoft’s growing alliance with OpenAI.


The monopolization of AI by Big Tech harms competition, jeopardizes consumer rights, privacy, and ethical AI advancement.

Competition Advocates Cheer FTC Probe into Big Tech's AI Startup Investments

Today NextGen Competition joined over a dozen civil society partners in demanding accountability for Apple’s ban on Beeper Mini. For far too long, the company has used unfair tactics to insulate its walled garden from competition. This has come at an enormous cost to consumers. Apple’s refusal to allow secure messaging between iOS and Android puts consumers’ sensitive data at risk and disadvantages those who use an alternative, often more affordable hardware.

The letter to Senators Klobuchar and Durbin calls for an investigation into Apple's attempts to squash efforts to streamline messaging between Apple and Android devices.


Congressional Investigations are Necessary following Restriction of Beeper Mini

It’s Past Time to Scrutinize Apple’s Anticompetitive Conduct

Today NextGen Competition joined over a dozen civil society partners in demanding accountability for Apple’s ban on Beeper Mini. For far too long, the company has used unfair tactics to insulate its walled garden from competition. This has come at an enormous cost to consumers. Apple’s refusal to allow secure messaging between iOS and Android puts consumers’ sensitive data at risk and disadvantages those who use an alternative, often more affordable hardware.

The letter urges DOJ to investigate Apple for antitrust violations given the recent issues with Beeper and Beeper Mini.


DOJ Antitrust Lawsuits are Necessary following Restriction of Beeper Mini

NextGen Competition joined coalition partners to support the FTC’s effort to modernize the premerger notification rules, particularly concerning potential labor market effects. The FTC’s proposal would require companies to report any penalties or findings issued against them from the Department of Labor's Wage and Hour Division (WHD), the National Labor Relations Board (NLRB), and the Occupational Safety and Health Administration (OSHA), as well as identify any pending WHD, NLRB, or OSHA matters.

The FTC rules would add critical tools to help the Commission review a company’s history of labor law violations during mergers and acquisitions. We joined the American Economic Liberties Project, Americans for Financial Reform Education Fund,  Athena Coalition, Demand Progress Education Fund, Good Jobs First, Public Citizen, Revolving Door Project, and Service Employees International Union.


Supporting FTC's Initiative to Enhance Premerger Notification Rules for Labor Law Compliance

NextGen Joins Letter Urging FTC to Consider Labor Law Violations in Merger Review

The Open Markets Institute and partners including SEIU, Rural Advancement Foundation International-USA (RAFI-USA), Public Citizen, NextGen Competition and more, have submitted a comment urging the Justice Department (DOJ) and the Federal Trade Commission (FTC) to strengthen and clarify the new, draft merger guidelines.

In the comment, the groups applaud the agencies for rejecting the 40-year trend that shifted their focus from “clamp[ing] down with vigor on mergers” to instead promoting narrow and economically dubious notions of “efficiency.” By anchoring the draft guidelines to the text of the Clayton Act and binding Supreme Court precedence, the Agencies, in the draft guidelines, demonstrate their intent to apply the law as Congress intended.


Letters

Public Interest Coalition Urges FTC to Investigate Meta’s Acquisition of Scale AI

An Open Letter to OpenAI

Coalition Urges FTC to Uphold Consumer Protections and Market Integrity

Protecting Innovation and Competition in AI: NextGen’s Letter to House Judiciary Subcommittee

Coalition Urges State Attorneys General to Investigate Nvidia

Competition Advocates Press FTC to Tackle AI Talent Poaching

Advocates Back DOJ Investigation into NVIDIA's Antitrust Tactics

Coalition Urges Harris to Ignore Donor Requests to Remove FTC Chair

Congress asked to probe tech companies hiding antitrust evidence

Advocates Urge FTC to probe Walmart’s dangerous acquisition of Vizio

Tech Accountability and Antitrust Advocates Support DOJ Investigation in Apple Supply Chain Abuse

Privacy and Competition Advocates Call on FTC and DOJ to Probe Walmart's $2.3 Billion Vizio Acquisition

Coalition Supports Calls on FCC to Investigate Apple’s Beeper Mini Ban

Google moving ‘full steam ahead’ to cement search monopoly despite DOJ trial

Competition Advocates Cheer FTC Probe into Big Tech's AI Startup Investments

It’s Past Time to Scrutinize Apple’s Anticompetitive Conduct

It’s Past Time to Scrutinize Apple’s Anticompetitive Conduct

NextGen Joins Letter Urging FTC to Consider Labor Law Violations in Merger Review

NextGen, Labor, & Civil Society Partners Submit Comment to Strengthen the New Merger Guidelines