June 29th, 2024

Antitrust: Europe's Vestager warns Microsoft, OpenAI 'the story is not over'

The European Commission, under Margrethe Vestager, scrutinizes Microsoft's OpenAI partnership for potential monopolistic practices. Concerns include undue influence, impact on competitors, and anticompetitive behavior in the AI industry. Regulatory scrutiny extends to Google and Apple.

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Antitrust: Europe's Vestager warns Microsoft, OpenAI 'the story is not over'

The European Commission, led by Margrethe Vestager, continues to scrutinize Microsoft's $13 billion partnership with OpenAI despite a previous review clearing Microsoft of exerting control over OpenAI. The concern lies in tech giants forming partnerships that could potentially lead to monopolistic practices. Vestager emphasized the need to ensure these partnerships do not result in one partner gaining undue influence over the other. The commission is particularly interested in investigating the impact of the Microsoft-OpenAI deal on competitors and the potential negative effects of exclusivity clauses. Additionally, the commission is looking into Google's plans to integrate the Gemini Nano AI model into Samsung devices. The regulatory scrutiny extends beyond the EU, with the US Federal Trade Commission reportedly considering an investigation into the Microsoft-OpenAI deal. The European Commission also highlighted the potential anticompetitive nature of Apple's decision to delay launching AI features in Europe. These actions reflect a broader regulatory focus on preventing monopolistic behavior and ensuring fair competition in the AI industry.

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