From UC Today: 2024-04-19 05:34:13

Microsoft’s $13 billion investment in OpenAI is facing a potential antitrust probe by the European Union. Sources suggest regulators are building a case to investigate if the partnership restricts competition within the EU market. The European Commission may also investigate if Microsoft’s market power distorts the market through specific practices.

The EU competition enforcer is seeking evidence before deciding whether to initiate an investigation. The European Commission is considering if Microsoft’s investment in OpenAI falls under EU Merger Regulation. If the probe proceeds, it would join the UK’s CMA and the US’s FTC in investigating the Microsoft-OpenAI partnership.

Microsoft’s investment in OpenAI has led to multiple investigations, with a dramatic saga unfolding at OpenAI in which CEO Sam Altman was ousted and reinstated following pressure from employees and investors. Microsoft secured a nonvoting board position and hired Altman and Cofounder Greg Brockman to manage a new AI research team. The CMA issued an Invitation to Comment to both businesses to gather information for a potential investigation into the partnership. The FTC is also conducting an inquiry into investments and partnerships involving Gen AI companies like Microsoft and OpenAI.



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