The European Union is ramping up its oversight of the artificial intelligence industry, specifically looking into Microsoft’s extensive partnership with OpenAI. Margrethe Vestager, the European Commission’s executive vice president for competition policy, explained that the initial review last year focused on potential violations of EU merger regulations, concluding that Microsoft had not taken control of OpenAI despite a $13 billion investment.
The commission is now taking a different approach by utilizing antitrust regulations to scrutinize the deal and the broader AI sector as a whole. Information requests were sent to major players like Microsoft, Google, Facebook, and TikTok in March, with a follow-up request specifically focused on the Microsoft-OpenAI partnership. Vestager emphasized the need to assess whether exclusivity clauses in such agreements could negatively impact competitors.
Acknowledging the importance of consumer choice, Vestager highlighted concerns regarding the availability of base models, which are integral to generative AI systems like chatbots. The EU is investigating Google’s arrangement with Samsung to pre-install Gemini Nano—a scaled-down version of Google’s Gemini Artificial Intelligence foundation model—on certain devices.
In addition to these inquiries, the European Commission is conducting preliminary antitrust investigations into various AI-related practices in the market. They are particularly focused on preventing acquisitions where one company acquires another primarily for its talent, as seen with Microsoft’s hiring of Inflection AI Founder Mustafa Suleyman and other key personnel.
Vestager stressed the EU’s commitment to ensuring that these practices adhere to merger control regulations and do not lead to undue concentration within the AI industry. This heightened scrutiny reflects the EU’s proactive stance in regulating big tech companies and major players in the AI sector. The upcoming implementation of the AI Law will establish the world’s first comprehensive set of regulations for artificial intelligence, further solidifying the EU’s position as a leader in regulating AI technologies.
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