The European Union (EU) is intensifying its scrutiny of major AI partnerships, targeting collaborations between Microsoft and OpenAI, as well as Google and Samsung. This move highlights the EU's growing concern over Big Tech companies potentially stifling competition in the rapidly evolving artificial intelligence sector.
EU competition chief Margrethe Vestager announced on Friday that regulators are seeking additional third-party opinions on these exclusive agreements. \"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 explained during a conference.
The investigation into Microsoft's partnership with OpenAI follows the latter's transformation, where Microsoft invested $13 billion into its for-profit subsidiary, securing a 49 percent stake. Despite this significant investment, Vestager clarified that the partnership does not fall under EU merger rules due to the absence of control.
Similarly, Google's multi-year deal with Samsung to integrate its generative AI technology into the Galaxy S24 series has also attracted regulatory attention. Vestager expressed concerns that such exclusive arrangements might block smaller AI developers from accessing key markets and users.
Beyond these deals, Vestager is also monitoring \"acqui-hires,\" where companies acquire startups primarily for their talent. An example includes Microsoft's $650 million acquisition of the startup Inflection in March, which allowed Microsoft to utilize Inflection's models and retain most of its staff.
\"We will make sure these practices don't slip through our merger control rules if they basically lead to a concentration,\" Vestager assured. This comprehensive approach underscores the EU's commitment to maintaining a competitive landscape in the tech industry, ensuring that innovation and fair competition remain at the forefront of the AI revolution.
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AI deals among Microsoft, OpenAI, Google and Samsung in EU crosshairs
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