Microsoft’s $13 billion OpenAI pact faces extra EU scrutiny

WORLD  29 June 2024 - 02:29

Microsoft's $13 billion investment in OpenAI is set to be scrutinized by the EU's antitrust regulators, who are probing the AI firm's exclusive use of Microsoft’s Azure cloud services.

Margrethe Vestager, the EU's antitrust chief, will likely decide not to launch a merger investigation but will question Microsoft's competitors and customers about the exclusivity clauses, Caliber.Az reports per foreign media.

These inquiries could lead to formal investigations, which may result in orders to change practices or potential fines if anti-competitive behavior is found.

The EU began reviewing the Microsoft-OpenAI partnership after issues arose during the firing and rehiring of OpenAI CEO Sam Altman, with Microsoft’s CEO Satya Nadella playing a key role. This scrutiny is part of broader concerns about the balance of power in the partnership and the implications for competition in the AI and cloud computing markets.

The EU's review is complemented by similar investigations by the UK's Competition and Markets Authority and the US Federal Trade Commission.

Caliber.Az