From Fortune Magazine:

Microsoft’s investment in OpenAI has become a success story, but the relationship between the two tech companies is facing an investigation from the European Commission regarding potential violation of merger regulations. This probe indicates the EC’s aim to curb big tech companies and possibly impose new laws limiting them.

This is the latest in a series of regulatory inquiries and fines by the EC on big tech companies like Apple and Google and new legislature being proposed in the European Union to regulate the industry. European Union lawmakers aim to limit the tech industry by proposing legislation that poses fines on companies if they don’t comply with new laws. Companies may be fined up to 6% of their revenue or be shut out of doing business within the 27-country bloc.

The EC’s executive vice president in charge of competition policy, Margrethe Vestager, is expected to meet with the CEOs of major tech firms from the US, as well as executives from OpenAI. Vestager has been strong in her stance to regulate big tech and protect against the misuse of generative AI tools, particularly in the EU.

Microsoft’s OpenAI investments have been under scrutiny by the EC, following an investigation of Microsoft’s previous merger with video game company Activision Blizzard. This probe comes amidst other antitrust allegations from rival tech companies in Europe, implying increased regulatory pressure on Microsoft by the European Commission.

In response to the EC’s announcements and inquiry, Microsoft stated that their partnership with OpenAI has fostered more AI innovation and competition. They mentioned that the only recent change is Microsoft having a nonvoting observer on OpenAI’s board.



Read more: Microsoft and OpenAI investigated by European Commission