UK Signals Microsoft's Partnership With OpenAI Faces Scrutiny

The UK's antitrust watchdog is considering whether Microsoft and OpenAI's partnership should be called in for a merger probe. From a report: The Competition and Markets Authority said Friday it was seeking views from interested parties to comment on whether the two firms recent collaboration could result in competition issues in the UK. The move from the UK watchdog comes less than two months since it eventually approved Microsoft's acquisition of Activision Blizzard.

Microsoft is the largest investor in OpenAI, having invested $13 billion into the startup so far. The software giant has incorporated several of OpenAI's products into its suite of enterprise tools, and the startup spends considerable amounts on Microsoft's cloud services. The CMA said it will look at whether the the balance of power between the two firms has fundamentally shifted to give one side more control or influence over the other. When asked to comment on the CMA's move a spokesperson at the European Commission said the regulator had been "following very closely the situation of control over OpenAI."

They said the same thing about their gaming merger

[drinkypoo]

Then they approved it even though it is obviously bad for consumers.

I expect this to go the same way, and for the same probable reason.

Re:They said the same thing about their gaming mer

[Malenfrant]

It's just posturing to pretend they have any power. If they actually banned anything their bluff would be called and nothing would happen except for a loss of face for UK regulators. So they pretend to look into it so they can continue to pretend they matter, but the outcome is already predetermined because nothing else is actually possible.

Re:

[thegarbz]

Then they approved it even though it is obviously bad for consumers.

Except they didn't. The UK government was the reason MS gave several concessions as part of the merger.

What "balance of power"?

[Mr. Dollar Ton]

Didn't we see Microsoft's boss having OpenAI dance as ordered just a week ago?

So, corporate licensing isn't allowed now?

[Targon]

Microsoft pumping money into a company that others can use too somehow makes it unfair to others? News flash, the biggest investors get more attention, even without any exclusivity or special status deals. If I spend $1000/month in a small business, yea, I'll be a higher priority customer compared to those who are unknown or who only spend $100/month. That's not anti-competitive, it's not that I've done things to stop others from shopping there, but it does mean I'll get a somewhat better level of ser