EU investigates Microsoft and OpenAI collaboration, Google and Samsung’s AI agreement under scrutiny

EU investigates Microsoft and OpenAI collaboration, Google and Samsung’s AI agreement under scrutiny



EU antitrust regulators are intensifying their scrutiny of Big Tech partnerships involving artificial intelligence. EU competition chief Margrethe Vestager stated on Friday that they will seek additional third-party opinions on the deals between Microsoft and OpenAI, as well as Google’s agreement with Samsung.

Vestager mentioned that the move could potentially lead to investigations and sanctions, reflecting concerns among regulators globally about the power and influence of Big Tech companies in the fast-evolving AI sector. In March, questionnaires were sent to Microsoft, Google, Meta’s Facebook, ByteDance’s TikTok, and other major tech players regarding their AI partnerships.

Specifically, Vestager highlighted potential issues around exclusivity clauses in the partnership between Microsoft and OpenAI, as well as concerns about AI partnerships limiting smaller developers’ access to users. The European Commission will not assess the Microsoft-OpenAI partnership under merger rules due to Microsoft not gaining control over OpenAI, despite holding a significant stake.

Furthermore, the EU regulators are also looking into the effects of Google’s collaboration with Samsung to pre-install its AI technology on certain Samsung devices. The deal, which was struck in January, involves integrating Google’s technology into Samsung’s Galaxy S24 series smartphones.

Vestager also mentioned the concept of “acqui-hires,” where companies acquire others primarily for their talent. She pointed out Microsoft’s recent acquisition of startup Inflection for $650 million in March, allowing Microsoft to utilize Inflection’s models and bring on board most of its staff.

Overall, the EU’s increased focus on AI partnerships in the tech industry reflects a broader trend of regulatory scrutiny towards Big Tech companies and their expanding influence in cutting-edge technologies. The potential investigations and sanctions arising from these partnerships underscore the importance of ensuring fair competition and protecting the interests of smaller players in the AI ecosystem.

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https://www.yahoo.com/tech/eu-seeks-views-microsoft-openai-144044928.html