Microsoft-OpenAI Pact Under EU Antitrust Review

Microsoft Corp.’s €11.9 billion investment into OpenAI Inc. is set to face additional scrutiny from the European Union’s antitrust authorities. The EU’s watchdogs are poised to question market competitors regarding OpenAI’s exclusive use of Microsoft’s cloud technology. This move follows the announcement by Margrethe Vestager, the EU’s antitrust chief, who clarified that the deal would not be investigated under the EU’s merger rules.

Instead, the regulatory focus will be on the exclusivity clauses between Microsoft and OpenAI. Vestager indicated that the regulators are concerned about the potential anti-competitive effects these clauses might have. The inquiry aims to determine whether these agreements could limit competition and innovation within the AI and cloud services market.

The EU’s decision to bypass merger rules and directly address exclusivity clauses signifies a nuanced approach to regulating tech giants. This method allows for a more targeted investigation into specific contractual terms that may hinder market competition without the broader implications of a merger review.

This scrutiny comes amid broader regulatory efforts to ensure fair competition in the rapidly evolving technology sector. The EU continues to assert its role in monitoring and mitigating potential monopolistic practices, ensuring a level playing field for all market participants.

Source: Microsoft’s $13 Billion OpenAI Pact Faces Extra EU Scrutiny