Microsoft’s Relationship with OpenAI Faces Possible Antitrust Probe by UK Regulators

The UK government is considering launching an antitrust probe into Microsoft’s partnership with OpenAI, citing concerns about potential impacts on competition. Regulators at the country’s Competition and Markets Authority (CMA) are seeking public feedback on whether the relationship between the two companies may constitute a relevant merger. Microsoft has responded by stating that OpenAI will remain an independent company, and the only change is that Microsoft will have a non-voting observer on OpenAI’s board. OpenAI has emphasized that the partnership allows them to pursue their research independently while benefiting from Microsoft’s support. The CMA’s investigation would focus on determining whether Microsoft exercises de facto control over OpenAI. This move reflects growing scrutiny of Microsoft in the UK, as the CMA has previously examined the company’s practices in cloud services and its merger with Activision Blizzard. The proposed investigation will proceed in phases, including a comment period, initial investigation, and potential in-depth probe.