EU investigates Microsoft and OpenAI collaboration, raises concerns over Google and Samsung’s AI agreement

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EU competition chief Margrethe Vestager announced that antitrust regulators will be seeking additional opinions on the AI partnerships between Microsoft and OpenAI, as well as Google’s deal with Samsung. This move comes amid concerns about Big Tech leveraging their dominance in new technology.

Vestager had previously sent questionnaires to several tech companies, including Microsoft, Google, Meta’s Facebook, and ByteDance’s TikTok, regarding their AI partnerships. Following a review of the responses, they will be requesting more information specifically about the Microsoft-OpenAI agreement to assess if any exclusivity clauses could harm competitors.

The European Commission will not be examining the Microsoft-OpenAI partnership under merger rules, as Microsoft does not have control over OpenAI despite its significant stake in the company. Vestager also expressed worries about big tech AI partnerships potentially limiting opportunities for smaller AI developers to access users.

Additionally, the Commission will be looking into Google’s agreement with Samsung to pre-install its AI technology on certain devices. This partnership was established earlier this year and integrated Google’s generative AI technology into Samsung’s Galaxy S24 series smartphones.

Vestager also mentioned the possibility of investigating “acquihires,” where a company acquires another primarily for its talent. This was exemplified by Microsoft’s recent acquisition of startup Inflection, which allowed them to utilize Inflection’s models and hire many of their employees.

Overall, the increased scrutiny on AI partnerships and acquisitions within the tech industry reflects growing regulatory concerns about Big Tech’s dominance in emerging technologies. These developments could potentially lead to investigations and sanctions aimed at ensuring a level playing field for all players in the AI sector.

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https://finance.yahoo.com/news/eu-seeks-views-microsoft-openai-144044802.html