UK Ends Antitrust Probe into Microsoft and OpenAI Partnership
LONDON (Reuters) – The United Kingdom has dropped its investigation into the partnership between Microsoft and OpenAI, the maker of ChatGPT. The Competition and Markets Authority (CMA) stated on Wednesday that Microsoft does not possess sufficient control over the AI company to justify a more extensive investigation.
The partnership, which commenced in 2019 with an initial $1 billion investment from Microsoft, had drawn antitrust scrutiny in both the UK and the United States. The CMA’s decision comes amid questions raised by boardroom developments and the CEO Sam Altman’s brief departure and subsequent return in 2023.
Although Microsoft gained considerable influence over OpenAI in 2019, the CMA determined that Microsoft has not since acquired de facto control. Therefore, the partnership did not meet the criteria for review under the UK’s merger control regulations.
However, the CMA clarified that its conclusion “does not constitute a finding that no competition concerns arise from its operation.”
A Microsoft spokesperson responded, stating that the partnership’s evolution “promote competition, innovation, and responsible AI development.” The spokesperson added, “We welcome the CMA’s conclusion, after careful and prudent consideration of the commercial realities, to close its investigation.”
The CMA has been examining the connections between large technology companies and AI startups over the past few years. They have reviewed collaborations among Microsoft and Mistral AI, Amazon and Anthropic, and Google-owner Alphabet and Anthropic. However, none of these have given the level of control required to trigger a full investigation under the merger control mandate.
The CMA obtained new enforcement powers to investigate major tech firms that have “strategic market status.” They’ve already launched investigations into Apple and Google’s smartphone ecosystems and Google’s search services. Some analysts and lawyers suggest that the appointment of Doug Gurr, a former Amazon executive, as the regulator’s interim chair in January may signal a shift towards a more relaxed approach to deal-making.
