The UK Competition and Markets Authority (CMA) has approved Microsoft’s $13 billion investment in OpenAI. This decision ends a 14-month period of uncertainty surrounding the antitrust review. According to Bloomberg, the CMA determined that the deal does not fall under mergers and acquisitions regulations, meaning an in-depth investigation is unnecessary.
Regulatory Concerns and Market Impact
During the review, the regulator examined whether the partnership strengthened Microsoft’s control over OpenAI. However, the CMA concluded that “while Microsoft gained significant influence over OpenAI back in 2019, there was no change in control.” Meanwhile, in the US, the Federal Trade Commission (FTC) remains concerned that the collaboration could enhance Microsoft’s dominance in artificial intelligence (AI). The FTC’s investigation is still ongoing.
Many experts believe that Microsoft’s partnership with OpenAI has given it a competitive edge over other tech giants by integrating AI into key products. In response to regulatory pressure, Microsoft and Apple relinquished their seats on OpenAI’s board in 2023.
Long Review Process and Broader AI Regulations
CMA Executive Director for Mergers Joel Bamford acknowledged that the review took longer than expected due to the complexity of the partnership and its evolving structure. The investigation was part of a broader effort by global antitrust authorities to prevent excessive market concentration in AI.
OpenAI maintains that its focus is on developing safe and useful AI, while Microsoft argues that the partnership fosters competition, notes NIXsolutions. The CMA has also previously approved Google’s collaboration with AI developer Anthropic.
The regulatory landscape for AI remains under scrutiny, and we’ll keep you updated as more developments unfold.