HomeUK Regulator: Microsoft's OpenAI Deal Not Subject to Probe
Britain's competition watchdog, the Competition and Markets Authority (CMA), announced on Wednesday that Microsoft's collaboration with OpenAI won't be probed under the merger rules of the U.K.'s Enterprise Act 2002, which tackles anticompetitive behavior.
"After reviewing all the evidence, the CMA doesn't think Microsoft has control over OpenAI's business decisions, though it does have a significant influence," the CMA stated in its ruling. "There's no change in control that would trigger a merger situation."
The CMA kicked off its probe into Microsoft's ties with OpenAI back in December 2023. Microsoft, a major backer of OpenAI, has poured nearly $14 billion into the AI firm since 2019. They also bundle OpenAI's tech into their Azure OpenAI Service and collaborate on projects like the Copilot chatbot and GitHub Copilot AI coding tool.
Initially, the CMA worried that Microsoft might have gained control over OpenAI's commercial moves back in 2019, and this control could have grown after Microsoft helped bring back OpenAI CEO Sam Altman in November 2023. The CMA feared this could seriously dent competition in the U.K.'s AI sector.
"More control by Microsoft over OpenAI could raise competition issues if Microsoft could limit other companies' access to OpenAI's top models in markets where AI is key and where Microsoft is already a big player," the CMA noted in a document. "We were also concerned about the partnership's impact on the growing market for accelerated computing, considering OpenAI's role as a major customer."
However, the CMA's latest decision suggests that recent changes might have actually reduced Microsoft's sway over OpenAI.
In January, Microsoft tweaked its cloud computing deal with OpenAI, shifting to a setup where they get the "first right of refusal" for some of OpenAI's workloads. Microsoft also allowed OpenAI to expand its computing resources, including a massive $500 billion U.S. data center deal with SoftBank. Before, Microsoft was OpenAI's only cloud provider.
Last year, Microsoft also backed away from taking a seat on OpenAI's board, which could have drawn more regulatory attention.
"The nature of the Microsoft partnership has been evolving during our investigation," the CMA mentioned in its decision. "Plus, it's not always clear what separates significant influence from actual control."
The CMA has been keeping a close eye on tech giants' investments in AI and AI startups to stop power from getting too concentrated in this new field. Although they've described these big tech-AI startup partnerships as a "web of connections," they haven't found any misconduct yet. In November, the CMA gave the green light to Alphabet's (Google's parent company) dealings with OpenAI's competitor, Anthropic.
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Comments (42)
0/500
![KevinRoberts]()
Interessant, dass die CMA hier keine formelle Untersuchung einleitet. 🤔 Microsofts Einfluss auf OpenAI ist ja nicht gerade klein – aber vielleicht reichen die bestehenden Kartellgesetze einfach nicht aus, um solche Partnerschaften zu regulieren. Finde das Thema trotzdem wichtig, vor allem für den Wettbewerb im KI-Bereich. Hoffentlich behalten die Behörden das im Auge!
![MatthewCarter]()
Interesting to see the CMA taking a hands-off approach here. Makes me wonder if regulatory bodies are still figuring out how to handle these 'strategic partnerships' that functionally act like mergers. On one hand, it seems pragmatic, but on the other, doesn't this create a loophole for big tech to avoid scrutiny? 🤔 The AI race is getting weird.
![BillyGarcia]()
Que alívio para a Microsoft! 🎉 Mas fico me perguntando... será que essa decisão do regulador britânico vai incentivar outras gigantes de tech a fazer parcerias 'rasas' com startups de IA pra escapar de fiscalização? Algo me diz que o debate sobre monopólios em IA está longe de acabar...
![JustinAnderson]()
Qué alivio para Microsoft! 😅 Pero me pregunto si esta decisión del regulador británico no es demasiado indulgente. Las grandes tecnológicas siguen acumulando poder y nadie parece querer frenarlas... Al final terminaremos con un oligopolio de IA controlado por 2-3 empresas.
![ArthurYoung]()
Interesting decision by the CMA! Microsoft’s tie-up with OpenAI gets a free pass, but I wonder if this sets a precedent for other AI partnerships. 🤔 Feels like a big win for tech giants navigating regulatory waters.
![SamuelRamirez]()
Interesting that Microsoft's OpenAI deal dodged a UK probe. Wonder if this sets a precedent for big tech partnerships. 🧐
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Interessant, dass die CMA hier keine formelle Untersuchung einleitet. 🤔 Microsofts Einfluss auf OpenAI ist ja nicht gerade klein – aber vielleicht reichen die bestehenden Kartellgesetze einfach nicht aus, um solche Partnerschaften zu regulieren. Finde das Thema trotzdem wichtig, vor allem für den Wettbewerb im KI-Bereich. Hoffentlich behalten die Behörden das im Auge!
Interesting to see the CMA taking a hands-off approach here. Makes me wonder if regulatory bodies are still figuring out how to handle these 'strategic partnerships' that functionally act like mergers. On one hand, it seems pragmatic, but on the other, doesn't this create a loophole for big tech to avoid scrutiny? 🤔 The AI race is getting weird.
Que alívio para a Microsoft! 🎉 Mas fico me perguntando... será que essa decisão do regulador britânico vai incentivar outras gigantes de tech a fazer parcerias 'rasas' com startups de IA pra escapar de fiscalização? Algo me diz que o debate sobre monopólios em IA está longe de acabar...
Qué alivio para Microsoft! 😅 Pero me pregunto si esta decisión del regulador británico no es demasiado indulgente. Las grandes tecnológicas siguen acumulando poder y nadie parece querer frenarlas... Al final terminaremos con un oligopolio de IA controlado por 2-3 empresas.
Interesting decision by the CMA! Microsoft’s tie-up with OpenAI gets a free pass, but I wonder if this sets a precedent for other AI partnerships. 🤔 Feels like a big win for tech giants navigating regulatory waters.
Interesting that Microsoft's OpenAI deal dodged a UK probe. Wonder if this sets a precedent for big tech partnerships. 🧐
