The European Union (EU) is launching an investigation into Microsoft’s collaboration with OpenAI to determine if it violates antitrust laws. The EU Commission is particularly concerned about the agreements between major digital players and generative artificial intelligence (AI) developers and providers, as well as Microsoft’s investment in OpenAI. The investigation follows similar probes by the US Federal Trade Commission (FTC) and the UK Competition and Markets Authority (CMA).
Generative AI is an emerging industry, and the EU wants to ensure it remains competitive and free from any potential market distortions. Margrethe Vestager, the EU Vice President, emphasized the importance of preventing anything from hindering businesses’ growth and the development of innovative products for consumers. The European Commission has called for contributions from interested parties to identify any competition issues in the industry.
The investigation specifically focuses on Microsoft and OpenAI due to their partnership, which some believe could be a way for Microsoft to enjoy the benefits of an acquisition without facing the scrutiny typically associated with such a transaction. This unique partnership between the two companies has garnered attention worldwide.
In addition to AI, the investigation also encompasses virtual worlds such as augmented reality (AR) and virtual reality (VR). However, for the sake of this article, we will concentrate on AI, Microsoft, and OpenAI.
Interested parties have until March 11, 2024, to provide feedback to the European Commission regarding any competition concerns. The goal is to ensure that the AI market remains competitive, while also closely monitoring partnerships to prevent any negative impact on market dynamics.
In conclusion, the EU has launched an investigation into Microsoft and OpenAI’s partnership to determine if it violates antitrust laws. The European Commission wants to maintain a competitive market in generative AI and prevent any distortions that could hinder businesses and innovation. This investigation follows similar actions taken by regulatory authorities in the US and UK. Businesses and experts are invited to contribute their perspectives, and the deadline to provide feedback is March 11, 2024.
