From The Register: 2024-06-29 05:12:00

The European Commission is continuing to scrutinize Microsoft and OpenAI’s $13 billion partnership despite a previous review clearing Microsoft of exerting control over OpenAI through the backdoor. Margrethe Vestager emphasized that key players in the ML space will remain under EU regulators’ watchful gaze.

The European Commission is investigating potential antitrust concerns regarding big tech partnerships with small AI developers. Vestager noted that partnerships can be healthy for competition if done correctly, but regulators need to ensure one partner doesn’t gain a controlling influence over the other.

The European Commission is now focusing on the impact of Microsoft and OpenAI’s collaboration on their rivals. Inquiries are being made to understand whether exclusivity clauses in the agreement could harm competitors, with concerns about potential monopolistic practices by big tech players in the AI space.

Microsoft’s deal with OpenAI involves providing cash and Azure computing power for integrating AI models into various products, although Microsoft has limited control over the super-lab’s operations. Regulators are also looking into Google’s plans to integrate AI models into Samsung devices as part of their investigations.

The European Commission is prepared to use the Digital Markets Act to regulate AI where anticompetitive behaviors are found, even if AI isn’t listed as a core platform service. US regulators are also reportedly considering investigations into Microsoft and OpenAI’s deal and Nvidia’s potential monopoly in the AI infrastructure market.



Read more at The Register: Europe’s Vestager warns Microsoft, OpenAI ‘the story is not over’ • The Register