European Union (EU) antitrust regulators are looking into Microsoft's financial support for OpenAI, the creator of ChatGPT, to determine if it complies with EU merger rules. This inquiry echoes a similar caution issued by UK regulators in December. Microsoft had pledged an investment exceeding $10 billion in OpenAI, securing a non-voting position on the board while asserting that it doesn't possess any ownership stake in OpenAI.
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The European Commission, responsible for enforcing EU competition laws, is closely monitoring the situation. In an official statement, the Commission revealed its investigation into whether Microsoft's investment in OpenAI falls under the purview of the EU Merger Regulation.
The statement also mentioned ongoing examinations of agreements between major players in the digital market and developers/providers of generative artificial intelligence (AI). While the companies involved were not disclosed, the Commission is actively scrutinizing their impact on market dynamics.
Additionally, the Commission has extended an invitation to interested parties, providing an opportunity for feedback until March 11. This move aims to gather insights on competition within virtual worlds and the realm of generative artificial intelligence. Simultaneously, requests for information have been dispatched to several prominent digital companies on these topics.
Margrethe Vestager, the EU's antitrust chief, emphasized the importance of businesses and experts sharing their perspectives on potential competition issues in these industries. She also underscored the Commission's commitment to vigilant monitoring of AI partnerships, ensuring they do not unduly distort market dynamics.
As the investigation unfolds, it remains to be seen how Microsoft's substantial investment in OpenAI aligns with EU regulations, marking a crucial juncture in the evolving landscape of digital markets and artificial intelligence.
