Microsoft-Google AI deal grabs EC's attention

Microsoft's partnership with OpenAI, and Google's deal to install its Generative AI (GenAI) capabilities on Samsung devices, have triggered a new antitrust investigation by the European Commission (EC).

Margrethe Vestager, the EC's vice president for competition policy, said it would send further antitrust questions to Microsoft and OpenAI “to understand whether certain exclusivity clauses may have a negative impact on competitors.”

A Microsoft representative told Mobile World Live (MWL) that the company “stands ready to respond to any further questions from the European Commission.”

Antitrust regulators are also requesting information to better understand the impact of a deal between Google and Samsung to pre-install Google's smaller Gemini Nano phone model on certain Samsung devices.

The European Commission concluded in April that Microsoft's $13 billion investment in OpenAI did not violate EU merger rules because it did not gain a controlling interest in the company.

“We appreciate the European Commission's thorough investigation and conclusion that Microsoft's investment and partnership with OpenAI does not give Microsoft control over the company,” Microsoft said in a statement to MWL.

Vestager added that the EC “will continue to monitor the relationships between all the key players in this rapidly changing field, including Microsoft and OpenAI.”

She said the EC is also concerned that AI partnerships with big tech companies could make it harder for smaller AI developers to reach users, which is why it is asking Google for more information about its partnership with Samsung.

She noted that the EC also monitors acquisitive hiring, where companies buy other companies primarily for their employees, citing Microsoft and Inflexion AI as prime examples.

“The commercialization of AI and its powerful tools will be driven by a few companies that already have significant market power,” Vestager said. “So we will remain vigilant.”

Sources 1/ https://Google.com/ 2/ https://www.mobileworldlive.com/big-tech/microsoft-google-ai-deals-draw-ec-antitrust-scrutiny/ The mention sources can contact us to remove/changing this article

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