After Securing A Board Seat, Microsoft's OpenAI Partnership Comes Under The UK Antitrust Authority's Scanner
Portfolio Pulse from Benzinga Neuro
The UK's Competition and Markets Authority (CMA) is investigating the partnership between Microsoft Corp. (NASDAQ:MSFT) and OpenAI to determine if it has resulted in a merger situation that could affect market competition. The CMA has opened an 'Invitation to Comment' to gather public feedback and information. This inquiry comes after Microsoft obtained a non-voting observer seat on OpenAI's board. The CMA is also studying the broader impact of Foundation Models on competition and consumer protection, with an update expected in March 2024.
December 08, 2023 | 12:37 pm
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Microsoft Corp. is under scrutiny by the UK's CMA regarding its partnership with OpenAI, which could potentially be seen as a merger situation affecting competition.
The investigation by the CMA is in its early stages, seeking public feedback, and has not yet concluded that the partnership between Microsoft and OpenAI is anti-competitive. However, regulatory scrutiny can create uncertainty for investors, potentially affecting Microsoft's stock in the short term. The outcome of the investigation could have significant implications for Microsoft's AI strategy and market position.
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