Sources suggest that a potential EU antitrust investigation may loom over Microsoft’s partnership with OpenAI.

Microsoft’s $13 billion investment in OpenAI may face an EU antitrust investigation, as per sources familiar with the matter. The scrutiny arises as regulators examine the impact of partnerships between tech giants like Alphabet, Amazon, Anthropic, and OpenAI on competition. While the EU antitrust regulator has opted against investigating the partnership under merger rules, Microsoft could still be subject to antitrust scrutiny.

The potential investigation would focus on whether the partnership limits or distorts competition within the EU market, or if Microsoft’s market dominance affects the market through particular practices. The European Commission appears to lean towards the latter concern but has not made a final decision on initiating an investigation. Microsoft holds a non-voting position on the OpenAI board and asserts no ownership of the ChatGPT creator.

The Commission has refrained from commenting on the broader antitrust situation but indicated it is evaluating whether Microsoft’s investment in OpenAI falls under the purview of the EU Merger Regulation. A spokesperson highlighted the need for concluding a lasting change of control to investigate potential competition issues. Both Microsoft and the Commission declined further comment on the matter, leaving the possibility of an antitrust investigation open-ended.

As the situation unfolds, the technology sector awaits further developments in the potential EU antitrust probe into Microsoft’s OpenAI investment. Stay tuned for updates on this evolving regulatory issue.