UK Clears Microsoft-OpenAI Partnership After Antitrust Probe
The UK’s Competition and Markets Authority (CMA) has determined that Microsoft’s partnership with OpenAI does not warrant an antitrust investigation. The CMA concluded that Microsoft does not have ‘de facto control’ over OpenAI, a finding that allows the collaboration to continue without further regulatory scrutiny.
The investigation, prompted by concerns raised in both the UK and the US, focused on the degree of control Microsoft holds over OpenAI. The partnership, which began in 2019 with a $1 billion investment from Microsoft, came under further scrutiny following internal conflicts at OpenAI in 2023.
According to a report by Reuters, the CMA’s decision reflects that, while Microsoft holds considerable influence over the AI firm, this does not equate to ‘de facto control.’ Thus, the partnership does not fall under the UK’s merger control regulations.
However, the CMA emphasized that its conclusion “does not constitute a finding that no competition concerns arise from its operation.”
A Microsoft spokesperson welcomed the CMA’s decision, stating that the partnership with OpenAI fosters “competition, innovation, and responsible AI development.”
“We welcome the CMA’s conclusion, after careful and prudent consideration of the commercial realities, to close its investigation,” the spokesperson added.
The CMA has been actively monitoring collaborations between major tech companies and AI startups. Other partnerships, including those between Microsoft and Mistral AI, Amazon and Anthropic, and Google and Anthropic, have not met the threshold for full merger control investigation.
This development coincides with a federal judge’s denial of Elon Musk’s request to block OpenAI from converting to a for-profit company. The judge stated that Musk “has not demonstrated likelihood of success on the merits” in his request for a preliminary injunction.
