Microsoft’s OpenAI Investment Under EU Antitrust Scrutiny
EU Regulators Assess Microsoft’s Investment in OpenAI
EU antitrust regulators have determined that Microsoft’s $13 billion investment in OpenAI is not an acquisition, sources familiar with the matter revealed on Wednesday. This suggests that the deal will avoid a formal European probe that could have imposed strict remedies on the U.S. tech giant.
Microsoft’s Position on OpenAI
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In January, EU regulators had indicated that the agreement might be subject to merger regulations in the region. Despite Microsoft having a non-voting position on the OpenAI board, the tech company clarified late last year that it did not hold any stake in the ChatGPT developer.
Continued Scrutiny on Microsoft
While Microsoft has evaded immediate investigation, the EU competition enforcer continues to monitor partnerships between major digital market players and generative AI developers. These partnerships could potentially trigger invasive and prolonged investigations into market dominance.
Future Assessment on Microsoft’s Investment
An EU spokesperson stated that the Commission is evaluating whether Microsoft’s financial backing of OpenAI falls under the purview of the EU Merger Regulation, due to their close observation of OpenAI’s governance prior to recent developments.
Global Scrutiny on Microsoft-OpenAI Partnership
The Microsoft-OpenAI collaboration is not only under examination in Europe, but also faces informal scrutiny in other regions. The UK’s Competition and Markets Authority is contemplating an investigation on its impact on British firms, while authorities in the U.S. are reportedly considering their own inquiries.
Microsoft’s Strategic Maneuvers
