EU scrutinizes AI partnerships of Microsoft-OpenAI and Google-Samsung
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EU antitrust regulators are poised to investigate the AI partnerships between Microsoft and OpenAI, as well as Google and Samsung.
EU competition chief Margrethe Vestager announced on Friday that additional third-party opinions would be sought regarding these collaborations.
The scrutiny focuses on exclusivity clauses in the Microsoft-OpenAI partnership and the potential antitrust implications of these agreements. Vestager highlighted the global regulatory concerns about Big Tech extending its market dominance into the realm of artificial intelligence.
In March, Vestager sent questionnaires to major tech companies, including Microsoft, Google, Meta's Facebook, and ByteDance's TikTok, regarding their AI partnerships. Following the initial responses, the EU is now requesting more detailed information on the Microsoft-OpenAI agreement to assess whether certain exclusivity clauses might harm competition.
A Microsoft spokesperson confirmed the company's readiness to address any further questions from the European Commission. Vestager noted that the Microsoft-OpenAI partnership is not subject to EU merger rules due to the lack of control. Despite OpenAI's nonprofit status, Microsoft has invested $13 billion in its for-profit subsidiary, acquiring a 49 percent stake.
Concerns also extend to potential obstacles Big Tech might create for smaller AI developers. Vestager mentioned a specific focus on Google's agreement with Samsung to pre-install its small model Gemini Nano on Samsung devices. This multi-year deal, reached in January, aims to embed Google's generative AI technology in Samsung's Galaxy S24 series smartphones.
Additionally, Vestager is examining "acqui-hires," where companies acquire others primarily for their talent. She cited Microsoft's $650-million acquisition of startup Inflection in March as an example, which allows Microsoft to utilize Inflection's models and hire most of its staff. Vestager emphasized the importance of ensuring such practices do not bypass merger control rules if they effectively result in market concentration, reported Reuters.
