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US Bipartisan Legislators Propose CATS Act to Provide AI Giants Limited Antitrust Protection Against China Model Distillation

GateNews
AI Industry News
According to Beating, US bipartisan legislators have proposed the CATS Act to provide limited antitrust protection to AI companies. Under the proposal, competitors can share intelligence on model theft, distillation, and cyberattacks, and may jointly delay or restrict high-risk model launches when national security risks emerge. China is identified as the primary target, with the proposal specifically citing concerns over model distillation—the practice of querying advanced models and using collected responses to train cheaper alternatives. Anthropic, OpenAI, and Google have previously accused Chinese labs of large-scale model capability extraction. Companies must notify the U.S. Department of Justice in writing before taking coordinated action and demonstrate their activities address safety risks only; price-fixing, market division, monopolistic conduct, and collective boycotts remain prohibited.
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