"Microsoft's OpenAI Partnership Could Face EU Antitrust Investigation, Sources Say" - Reuters News
Portfolio Pulse from Benzinga Newsdesk
Microsoft's $13 billion investment in OpenAI is under scrutiny by EU antitrust regulators, who are considering an investigation to determine if the partnership restricts competition within the EU. While not currently investigated under EU merger rules, concerns exist about Microsoft's market power and potential distortion of competition. The European Commission is gathering evidence and has not yet decided to proceed with an investigation. Microsoft holds a non-voting position on OpenAI's board without owning any part of the company.
April 18, 2024 | 3:39 pm
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Microsoft's partnership with OpenAI could face an EU antitrust investigation, potentially impacting its operations and market position in the EU.
The potential EU antitrust investigation into Microsoft's partnership with OpenAI could lead to regulatory challenges and possibly restrict Microsoft's operations within the EU. This uncertainty may negatively affect investor sentiment and Microsoft's stock price in the short term, as regulatory investigations can lead to fines, operational restrictions, or changes in business practices.
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