UK Ends Probe into Microsoft and OpenAI Partnership – Reuters Reports”
The UK has decided to drop its investigation into Microsoft’s partnership with OpenAI, the company behind ChatGPT, according to Reuters. Britain’s Competition and Markets Authority (CMA) said Microsoft does not have enough control over OpenAI to require further scrutiny under UK merger rules.
Reuters explains that Microsoft first invested $1 billion in OpenAI in 2019, and the partnership has faced antitrust questions in both the UK and the US. However, the CMA found that Microsoft does not have “de facto control” over OpenAI, meaning the deal does not qualify for a full review.
A Microsoft spokesperson told Reuters that the partnership “promotes competition, innovation, and responsible AI development.” The company welcomed the CMA’s decision to close the investigation after careful consideration.
Reuters highlights that the CMA has been examining partnerships between big tech companies and AI startups, including deals involving Amazon, Google, and Mistral AI. So far, none of these partnerships have met the threshold for a full investigation.
The CMA has also gained new powers to investigate major tech firms if they hold “strategic market status,” according to Reuters. The regulator has already launched probes into Apple and Google’s smartphone ecosystems and Google’s search services.
Reuters notes that the appointment of Doug Gurr, a former Amazon executive, as the CMA’s interim chair in January has led some analysts to suggest the regulator might take a softer approach to tech deals in the future.
For more details on this story, visit Reuters’ website.