UK Watchdog Considers Probe into Microsoft’s Close Partnership with OpenAI

In a potentially groundbreaking move, the UK’s Competition and Markets Authority (CMA) is contemplating launching an antitrust investigation into Microsoft’s close ties with OpenAI. The probe would examine whether the partnership between the two tech giants could be considered a merger, with potential detrimental impacts on competition. The CMA’s interest in this case stems from recent developments in OpenAI’s leadership, particularly the sacking and subsequent reinstatement of its founder and CEO, Sam Altman, and Microsoft’s subsequent access to confidential information. While Microsoft maintains that OpenAI will remain independent, the CMA seeks to determine whether the relationship truly meets this criterion. The regulatory watchdog has issued an Invitation to Comment (ITC) to gather public feedback and decide whether a full-scale investigation is warranted. Microsoft and OpenAI both insist that the partnership has fostered innovation while preserving independence. Whether or not the CMA will initiate an investigation remains to be seen, but given Microsoft’s previous encounters with the agency, it seems likely.