Brussels is preparing for an antitrust investigation into Microsoft’s $13 billion investment into OpenAI, following the European Union’s decision to not move forward with a merger review of the alliance between the two tech giants. The European Commission had explored a review under merger control rules but decided against it due to insufficient evidence that Microsoft controls OpenAI, reported the Financial Times.
Margrethe Vestager, EU competition chief, announced that the bloc is now examining whether the collaboration between Microsoft and the well-funded AI startup is hampering competition in the rapidly evolving market. Regulatory bodies in the US and UK are also scrutinizing the alliance.
Vestager highlighted that the investigation would delve into whether exclusivity clauses in the Microsoft-OpenAI agreement could negatively impact competitors. She noted that the EU had sent inquiries to Microsoft and other tech firms to assess if market concentration in AI was blocking new entrants.
Microsoft welcomed the European Commission’s review, stating it appreciates the thorough evaluation and its conclusion that Microsoft does not control OpenAI. The EU’s concerns have extended to other tech deals, including Google’s arrangement with Samsung to install a modified version of its Gemini AI system on Samsung devices.
Given the complexities of antitrust investigations, which typically last longer than merger reviews, the potential outcome remains uncertain. Companies found violating antitrust laws risk facing hefty fines and may be legally obliged to alter their practices. Vestager emphasized that the EU aims to ensure that no single company gains disproportionate control over the AI market through practices like “acqui-hires” and exclusive agreements.