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European Commission examines Microsoft-OpenAI relationship closely. #antitrust

The European Commission is investigating the relationship between Microsoft and OpenAI to understand if certain exclusivity clauses could harm competitors. The Commission has sent formal information requests to several Big Tech players to review practices like tying and bundling that may block competitors from essential resources. The focus is on Microsoft’s $13 billion investment in OpenAI and OpenAI’s exclusive use of Microsoft’s cloud technology. The Commission is considering whether to launch formal investigations that could lead to fines if antitrust violations are found.

European Commission Executive Vice President Margrethe Vestager stated that the Commission has closed a potential investigation into the partnership between Microsoft and OpenAI, concluding that Microsoft has not acquired lasting control over OpenAI. However, the Commission will continue to monitor the relationships between key players in the AI sector.

The Commission’s scrutiny of Microsoft’s involvement with OpenAI began in January, inviting businesses and experts to share competition issues in the virtual world and AI sectors. Vestager emphasized the importance of maintaining competitiveness in these rapidly developing markets to ensure businesses can innovate and provide the best products to consumers. The investigation aims to ensure that nothing impedes growth and innovation in these sectors.

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Source link: https://www.pymnts.com/big-tech/2024/european-commission-takes-closer-look-at-microsoft-openai-ties/

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