The European Commission has cleared Microsoft of exerting control over OpenAI through a $13 billion partnership, but continues to scrutinize the deal for potential antitrust violations. The commission is concerned about tech giants forming partnerships with smaller AI developers to avoid regulatory review and monopoly checks. While these partnerships can be beneficial for competition, there is a risk of one partner gaining a controlling influence over the other. The commission is investigating whether exclusivity clauses in the Microsoft-OpenAI collaboration could harm competitors. Additionally, there are concerns about big tech players leveraging their market power to block AI competitors and prevent customers from switching. Microsoft’s deal with OpenAI involves providing cash and Azure computing power in exchange for integrating AI models into its products. Despite Microsoft’s significant investment, it has limited control over OpenAI’s operations. The commission is also looking into Google’s plans to integrate AI models into Samsung devices. The US Federal Trade Commission and Department of Justice are reportedly considering probes into the Microsoft-OpenAI deal and Nvidia’s potential monopoly in the AI infrastructure market. Apple’s decision to postpone launching AI features in Europe has also raised concerns about anticompetitive behavior. EU regulators are prepared to use the Digital Markets Act to regulate AI embedded in core platform services.
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Source link: https://www.theregister.com/AMP/2024/06/29/microsoft_openai_eu/
Europe’s Vestager warns Microsoft and OpenAI: “Story not over” #competition
