Microsoft's partnership with OpenAI could face an EU antitrust probe as regulators pointed to its exclusivity clauses, while Google's AI deal with Samsung also sparked a scrutiny
EU antitrust regulators will seek additional third-party opinions, EU competition chief Margrethe Vestager said on Friday.
The moves underscore unease among regulators around the world for Big Tech to leverage its dominance in new technology, echoing the companies' market power in other sectors.
Vestager sent questionnaires in March to Microsoft, Google, Meta's Facebook and ByteDance's TikTok, as well as other big tech companies related to their AI partnerships.
“We have reviewed the responses and are now submitting 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,” he said at a conference .
Reuters was the first to report that EU regulators were building a case that could lead to an investigation into the partnership between the two companies.
“We stand ready to answer any additional questions the European Commission may have,” a Microsoft spokesperson said.
Microsoft's partnership with OpenAI will not be subject to EU merger rules because of the absence of control, Vestager said.
While OpenAI's parent is a non-profit organization, Microsoft has invested $13 billion (roughly Rs. 1,08,425 crore) in a for-profit subsidiary, which would be a 49 percent stake.
Vestager also mentioned his concern that Big Tech was blocking smaller AI developers from reaching users and businesses.
“We are also submitting requests for information to better understand the effects of Google's agreement with Samsung to pre-install its small Gemini Nano model on certain Samsung devices,” he said.
In January, Google struck a multi-year deal with the South Korean company to bring its generative artificial intelligence technology to Samsung's Galaxy S24 series of smartphones.
Vestager also said he was looking into “acquisitions,” where one company acquires another primarily for its talent, as exemplified by Microsoft's $650 million (roughly Rs. 5,422 crore) acquisition of startup Inflection in March that allowed him to use the Inflection models. and hire most of its staff.
“We will make sure that these practices do not escape our merger control rules if they essentially lead to a concentration,” he said.
© Thomson Reuters 2024
