Microsoft and OpenAI's partnership faces potential EU antitrust probe
What's the story
Microsoft's significant $13 billion investment in OpenAI is reportedly under the scrutiny of the European Union (EU) for a potential antitrust investigation.
The partnership between Microsoft and OpenAI, along with similar alliances involving tech giants like Alphabet, Amazon, and Anthropic, has caught the attention of global antitrust regulators.
The primary focus of this concern is to evaluate how these collaborations could potentially impact market competition.
Regulatory review
EU antitrust regulator's stance on Microsoft-OpenAI partnership
Despite initial reports suggesting that the EU antitrust regulator had decided against probing the alliance under EU merger rules, Microsoft may still face an antitrust investigation.
The inquiry could explore whether this partnership hampers or manipulates competition within the EU's internal market.
It could also examine if Microsoft's dominant market position skews the market through specific practices.
Commission's course
European Commission's approach to Microsoft-OpenAI investigation
The European Commission is reportedly more inclined toward investigating whether Microsoft's dominant market position skews the market through specific practices.
However, no definitive decision has been reached as the EU competition watchdog continues to gather evidence.
The commission may ultimately decide against launching an investigation.
Despite holding a non-voting seat on OpenAI's board, Microsoft maintains it does not possess any stake in the ChatGPT maker.
Regulatory review
Commission's review of Microsoft's investment under EU Merger Regulation
While not commenting on the broader antitrust scenario, the commission confirmed its ongoing review of Microsoft's investment in OpenAI under EU Merger Regulation.
A spokesperson stated, "In this respect, it is however important to underline that in order to look into potential competition concerns, the commission first needs to conclude that there has been a change of control on a lasting basis."