BRUSSELS – The European Union is considering an antitrust investigation into Microsoft’s partnership with OpenAI and Google’s artificial intelligence agreement with Samsung, citing concerns over exclusivity clauses. This scrutiny reflects global regulatory apprehension about Big Tech extending its market dominance into new technologies.
EU competition chief Margrethe Vestager announced that additional third-party opinions would be sought. This move follows earlier actions in March, when questionnaires were sent to major tech firms, including Microsoft, Google, Meta’s Facebook, and ByteDance’s TikTok, regarding their AI partnerships.
“We have reviewed the replies and are now sending a follow-up request for information on the agreement between Microsoft and OpenAI to understand whether certain exclusivity clauses could have a negative effect on competitors,” Vestager said at a conference.
The EU’s interest in these partnerships highlights the ongoing concerns about potential anti-competitive practices in the AI sector. Reuters previously reported that EU regulators were preparing a case that might lead to a formal investigation into Microsoft’s collaboration with OpenAI.
“We stand ready to respond to any additional questions the European Commission may have,” a Microsoft spokesperson stated. Vestager clarified that Microsoft’s partnership with OpenAI would not be subject to EU merger rules due to the absence of control. Despite OpenAI’s nonprofit status, Microsoft has invested $13 billion in its for-profit subsidiary, securing a 49% stake.
Vestager also expressed concerns about Big Tech potentially blocking smaller AI developers from accessing users and businesses. She noted the EU’s intent to further investigate Google’s arrangement with Samsung to pre-install its AI model, Gemini Nano, on specific Samsung devices. In January, Google secured a multi-year deal to integrate its generative AI technology into Samsung’s Galaxy S24 series smartphones.
Additionally, Vestager is examining “acqui-hires,” where companies acquire others primarily for their talent. She cited Microsoft’s $650-million acquisition of startup Inflection in March, which allowed it to employ most of Inflection’s staff and use its models.
“We will ensure these practices don’t evade our merger control rules if they essentially lead to a concentration,” Vestager concluded.
