The European Commission has decided to examine market competition in the virtual world and in the field of generative artificial intelligence, signaling an analysis of Microsoft’s investment in OpenAI.
– “Virtual worlds and generative artificial intelligence are rapidly evolving. It is crucial that these new markets remain competitive and that nothing stands in the way of business growth and providing the best and most innovative products to consumers,” said European Commissioner for Competition Margrethe Vestager.
The Commission has also decided to investigate potential agreements between ‘major players in the digital market’ and developers and suppliers of generative artificial intelligence to determine the impact of their partnership on ‘market dynamics,’ according to a statement.
The Competition Authority has sent requests for information to leading ‘players’ in the digital market and expects responses by March 11.
Brussels is also analyzing Microsoft’s investment in OpenAI to determine whether it is subject to merger provisions.
The tech giant invested $1 billion in OpenAI in 2019 and $10 billion in ChatGPT in 2023.
The American software giant claims, however, that it does not own shares in OpenAI.
– “The only recent change is that Microsoft will now have observer status without voting rights on the OpenAI board,” said a Microsoft spokesperson.
The British competition regulator announced an analysis of Microsoft’s partnership with OpenAI as early as December, highlighting that it plans to determine any potential negative impact on competition in the market for AI-based applications.
The Competition and Markets Authority (CMA) suspects that the partnership has de facto resulted in Microsoft’s takeover of control over OpenAI.
