“Tech Giants Face Scrutiny in EU: Microsoft’s Partnership with OpenAI and Google’s AI Deal with Samsung Under Spotlight” – Reuters

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Microsoft and OpenAI have formed an alliance that is now under the scrutiny of EU regulators, who are looking closely at the recent AI deal between Google and Samsung. The partnership between Microsoft and OpenAI aims to accelerate the development of artificial intelligence technology and is seen as a potential obstacle to fair competition in the European market.

The EU’s attention to the Microsoft-OpenAI alliance comes at a time when regulatory scrutiny of big tech companies is increasing worldwide. The deal between Google and Samsung, which was announced earlier this year, has raised concerns about the consolidation of power in the AI industry and its impact on competition. EU regulators are looking into whether the partnership between Microsoft and OpenAI could have similar anti-competitive effects.

The Microsoft-OpenAI alliance was formed in 2019, with Microsoft investing $1 billion in OpenAI to help develop advanced AI technologies. The partnership aims to accelerate the development of AI and make it more widely available to businesses and consumers. However, regulators are concerned that the deal could give Microsoft and OpenAI an unfair advantage in the AI market, potentially stifling competition and innovation.

The EU’s competition watchdog, the European Commission, is reportedly looking into the Microsoft-OpenAI alliance as part of a broader investigation into the AI industry. The Commission is concerned that the partnership could lead to the consolidation of power in the AI market, with Microsoft and OpenAI gaining a dominant position that could limit competition and harm consumers.

In addition to the Microsoft-OpenAI alliance, regulators are also closely monitoring the deal between Google and Samsung. The partnership between the two tech giants aims to develop AI technologies for a wide range of products, from smartphones to smart appliances. Regulators are concerned that the deal could give Google and Samsung an unfair advantage in the market, potentially leading to higher prices for consumers and less choice in the marketplace.

The EU’s scrutiny of the Microsoft-OpenAI alliance and the Google-Samsung deal highlights the growing concern among regulators about the power and influence of big tech companies in the AI industry. In recent years, there has been increasing regulatory scrutiny of tech giants like Google, Amazon, Facebook, and Apple, as concerns about market dominance and anti-competitive behavior have grown.

Regulators are now looking closely at partnerships and alliances in the AI industry to ensure that competition is not being stifled and that consumers are not being harmed. The Microsoft-OpenAI alliance and the Google-Samsung deal are just two examples of the many partnerships that are coming under regulatory scrutiny as the AI industry continues to grow and evolve. It remains to be seen what steps regulators will take to address these concerns and ensure fair competition in the AI market.

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https://www.reuters.com/technology/eu-seeks-views-microsoft-openai-google-samsung-deals-eus-vestager-says-2024-06-28/