In This Article:
The UK Competition and Markets Authority (CMA) has concluded its antitrust investigation into the partnership between Microsoft and OpenAI, finding no grounds for action.
The UK competition watchdog said that the collaboration does not warrant an investigation under the UK's anticompetitive practices law.
The inquiry, which began in December 2023, was prompted by concerns that Microsoft’s substantial investment in OpenAI—amounting to nearly $14bn since 2019—could stifle competition.
The authority was concerned that the partnership could potentially lessen competition in the UK, particularly in the supply of cloud computing services and productivity software, as well as in the emerging market for accelerated computing.
The CMA's concerns also extended to potential impacts on competition in markets where Microsoft and OpenAI overlap, such as the development and distribution of foundation models (FMs) and FM-based services, including chatbots.
However, after thorough consideration, the CMA has determined that no relevant merger situation has been created and that it does not have jurisdiction to review the partnership as it stands.
CMA said: “A finding that the Partnership does not give rise to a relevant merger situation does not constitute a finding that no competition concerns arise from its operation.”
In reaching this decision, the CMA evaluated potential sources of influence or control, including Microsoft's investment and involvement in OpenAI's corporate governance, the supply of computing resources by Microsoft, and Microsoft's intellectual property and commercialisation rights.
"CMA closes investigation into Microsoft-OpenAI partnership " was originally created and published by Verdict, a GlobalData owned brand.
The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.