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European antitrust investigation against Microsoft and OpenAI underway

  • July 1, 2024
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Microsoft and OpenAI have not yet been released from an antitrust investigation. The European Commission is considering whether Microsoft will receive exclusivity. Since January, the EU has been

European antitrust investigation against Microsoft and OpenAI underway

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Microsoft and OpenAI have not yet been released from an antitrust investigation. The European Commission is considering whether Microsoft will receive exclusivity.

Since January, the EU has been watching the inseparable Microsoft-OpenAI tandem with suspicion. The investigation initially focused on the question of whether the relationship between the two companies should be considered an investment or a merger. This investigation has now been finally concluded and concludes that there is no question of a merger.

However, Microsoft and OpenAI have not yet been cleared by the European Commission, said EU Commissioner Margrethe Vestager. “The key question was whether Microsoft had gained permanent control over OpenAI. After a thorough investigation, we concluded that this was not the case. This closes this chapter, but the story is not over yet,” Vestager said during a conference.

Exclusivity clauses

The European Commission is taking the bull by the horns and has already sent out a new series of questions. It is necessary to investigate how the collaboration between Microsoft and OpenAI works on a technological level. The Commission wants to find out whether there are “exclusivity clauses” and how these affect competition in the AI ​​market. Microsoft’s Bing and Copilot services are based on OpenAI’s GPT models.

The European Commission will then decide whether another antitrust investigation is necessary. In this case, the approach will also change completely and the focus will shift from how Microsoft and OpenAI affect the wider AI industry. Such research can take several years and involve several phases. Microsoft already knows very well how an antitrust investigation works.

Google and Samsung will also receive a questionnaire. Both companies have signed a contract to install the Gemini Nano model on Samsung smartphones. Such collaborations could make it difficult for smaller AI players to reach an audience.

Source: IT Daily

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