Innovation Accelerator or “Venus Flytrap” Strategy? The Antitrust Perspective on Open Source AI Regulation

Abstract While open source AI may foster innovation, some scholars argue that it may function as a monopoly strategy, whereas others contend that it cannot effectively promote competition due to the concentration of upstream resources, and may even create an appearance of openness that enables firms to evade antitrust regulation, thereby advocating structural interventions. The article combines a case study of Google Android, a doctrinal examination of antitrust theories concerning duties to deal, and a structural analysis of the AI technology stack and competitive dynamics in AI model markets. We find that open source does not inherently facilitate monopolization. The key issue is whether open source strategies, combined with network effects, create a lock-in ecosystem containing critical proprietary bottlenecks that enable firms to regain control. Furthermore, even where market concentration exists at the resource layer, open source AI can still substantially promote competition. Mandating access to upstream resources may ultimately undermine incentives for investment and innovation. Regulators should avoid treating open source or concentration in upstream markets as inherently suspicious. Instead, enforcement should focus on specific forms of conduct, particularly the leveraging of upstream resources to distort competition in downstream markets.