UK regulator clears Microsofts $13bn deal with OpenAI after lengthy delay

Date:
Thu, 06 Mar 2025 09:56:07 +0000

Description:
UK CMA watchdog rules Microsofts relationship with OpenAI hasnt been problematic.

FULL STORY ======================================================================
- UK CMA was worried about Microsofts involvement in OpenAI
- OpenAI does not qualify for investigation, says Authority
- Critics worried about government pressure on CMA

The UKs Competition and Markets Authority (CMA) has ended its investigation into Microsofts partnership with OpenAI and its multibillion-dollar
investment into the company behind ChatGPT.

Despite Microsoft investing heavily in the AI startup and having exclusive
use of some of its AI products, the CMA has now concluded the partnership has not been problematic.

The watchdog also considered how the companies relationship changed during
the short period that CEO Sam Altman was fired, then rehired.

UK CMA deems Microsoft-OpenAI partnership healthy

The CMA said yesterday: The CMA has decided that Microsofts partnership with OpenAI does not qualify for investigation under the merger provisions of the Enterprise Act 2002.

Expanding on its conclusion in a phase one summary , the CMA noted that no relevant merger situation ha[d] been created, therefore it did not ha[ve] to conclude on whether the other criteria for establishing a relevant merger situation [were] met.

The Authority initiated the probe back in December 2023 because of Microsofts involvement in bringing Sam Altman back to OpenAI, but despite Microsofts
high level of material influence over OpenAI, it doesnt have full control
over the company.

The official decision came just one day after the merger inquiry was
launched, and critics have argued that political changes and government pressure on regulators to focus on economic growth may have guided the CMAs conclusion.

Foxglove co-executive director Rosa Curling told the BBC : This is a bad sign that Big Tech has successfully convinced the prime minister to defang our competition regulator and let Big Tech gobble up the current generation of cutting-edge tech just like they did the last one.

Microsoft welcomed the outcome: Our OpenAI partnership and its continued evolution promote competition, innovation, and responsible AI development,
and we welcome the CMA's conclusion, after careful and prudent consideration
of the commercial realities, to close its investigation.

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Link to news story: https://www.techradar.com/pro/uk-regulator-clears-microsofts-usd13bn-deal-with -openai-after-lengthy-delay

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