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EU Intensifies Scrutiny on Microsoft's $13B OpenAI Investment

Jun 28, 2024 1 min read

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Microsoft's $13 billion investment in OpenAI Inc. is set to face further scrutiny from the European Union's antitrust authorities. EU competition chief Margrethe Vestager is expected to question Microsoft's clients and rivals about the exclusivity clauses related to the use of Microsoft's cloud technology by OpenAI. While the EU will not pursue an investigation under its merger rules, these inquiries could lead to a formal antitrust investigation if evidence suggests that the partnership is stifling competition.

The scrutiny is part of a broader effort by EU regulators to assess the impact of major tech partnerships on market competition. In addition to Microsoft's investment in OpenAI, the European Commission is also looking into Google's AI deal with Samsung. These actions are driven by concerns over potential market concentration and anti-competitive behavior in the rapidly growing AI sector. Regulators in the US and UK are similarly investigating the Microsoft-OpenAI alliance, reflecting global regulatory interest in ensuring competitive practices in the tech industry.

#tech #european-union #ai #finance #markets #business #antitrust #lawsuits

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