This report, prepared for the Computer & Communications Industry Association (CCIA), assesses competitive dynamics in Generative AI across the Asia-Pacific (APAC) region. It examines whether concerns raised by competition authorities about concentration and potential adverse consumer outcomes have materialised to date. The report covers the foundation model, deployment platform and application layers of the GenAI stack, drawing on six APAC case studies. The report finds that, as at the time of publication, the GenAI sector in APAC shows characteristics consistent with healthy competition, with continued high levels of investment, entry and innovation.
We find five mechanisms that promote competitive outcomes.
Multi-homing is prevalent and switching costs are low, as demonstrated by Chinese developers rapidly migrating from OpenAI's API to domestic alternatives when access was blocked.
Platforms favour openness, with firms like Samsung offering rival and inhouse models, and Tencent and Baidu integrating rival models alongside their own.
Modular design enables organisations like CBA to maintain simultaneous partnerships with multiple providers without lock-in.
Intermediaries such as TCS and orchestration platforms like LangChain facilitate foundation model comparison and switching.
Regulatory diversity, local language requirements and cost-efficient training techniques support a wide range of competitors and help prevent region-wide dominance by any single provider.
The report concludes that competition is currently working effectively, with no evidence of concerning concentration levels. The report cautions against premature intervention, noting the risks of disrupting competitive processes or chilling innovation during critical development phases, while acknowledging that continued monitoring remains prudent.
This analysis was led by Chris Whelan and Meryem Haraj Touzani, and supported by Calum Young.
Chris and Meryem presented these findings at a report launch event in Singapore co-hosted with the CCIA and Baker McKenzie Wong & Leow on 27 November 2025.
The preparation of this paper has been supported by the Computer & Communications Industry Association. The opinions expressed are those of RBB Economics and do not necessarily represent the views of CCIA or of its members.
