EU antitrust regulators are considering investigating Microsoft’s partnership with OpenAI due to concerns about exclusivity clauses. This reflects a broader discomfort among regulators worldwide about big tech companies leveraging their dominance in new technologies. Margrethe Vestager, the EU competition chief, has sent requests for additional information on the deal between Microsoft and OpenAI to understand the potential negative impact on competitors. Microsoft’s partnership with OpenAI, which involves a significant investment but lacks control, may not comply with EU merger rules. Additionally, concerns have been raised about big tech companies blocking smaller AI developers from reaching users and businesses. Google’s deal with Samsung to install its AI technology on Samsung devices has also drawn scrutiny. Vestager is also investigating “acquire-hires,” where companies acquire others primarily for talent, such as Microsoft’s acquisition of a startup for $650 million. The aim is to ensure that such practices do not circumvent merger control rules. Overall, the regulatory landscape around AI partnerships and acquisitions involving big tech companies is evolving, with a focus on ensuring fair competition and preventing anti-competitive behavior.
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EU investigates Microsoft, OpenAI, Google, Samsung AI agreement. #antitrust
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