EU Antitrust Regulators Scrutinize Microsoft’s OpenAI Investment for Possible Merger Violation
In a statement released on Tuesday, the European Union’s antitrust regulators announced a closer examination of Microsoft’s financial support for OpenAI under the EU Merger Regulation. This echoes a prior cautionary message from UK regulators in December concerning potential regulatory implications.
Despite Microsoft’s commitment last year to invest over $10 billion in OpenAI with a non-voting position on the board, the U.S. tech giant emphasizes that it does not hold any ownership stake in the AI development company. The European Commission, acting as the EU’s competition enforcer, is now investigating whether Microsoft’s investment warrants a review under the EU Merger Regulation.
In response, Microsoft defended its partnership with OpenAI, emphasizing that the collaboration initiated in 2019 has driven AI innovation and competition, maintaining the independence of both entities. The recent change noted by Microsoft involves the appointment of a non-voting observer on OpenAI’s Board.
The European Commission disclosed that it is examining agreements between major digital market players and generative AI developers for potential impacts on market dynamics, without specifying the companies involved. Interested parties have until March 11 to provide feedback on competition related to virtual worlds and generative artificial intelligence.
EU antitrust chief Margrethe Vestager emphasized the importance of monitoring AI partnerships to prevent any undue distortion of market dynamics. The Commission has also issued requests for information to several major digital companies on these topics as part of its ongoing efforts to ensure fair competition.