The EU is inviting views on competition in the context of virtual worlds and generative AI, and is investigating the impact of partnerships between large digital market players and generative AI developers on market dynamics. EU competition chief Margrethe Vestager emphasized the importance of these new markets remaining competitive. The EU is also examining whether Microsoft's investment in OpenAI might be reviewable under the EU Merger Regulation. The Commission is closely monitoring the situation of control over OpenAI, including Microsoft's role on the OpenAI board and the investment agreements between the two.
Key takeaways:
- The European Union is investigating whether Microsoft's investment in OpenAI falls under the bloc's merger regulations, following the tech giant's increased involvement in the AI company during a leadership upheaval.
- Last month, the UK's competition authority launched an inquiry to decide whether Microsoft and OpenAI are in a "relevant merger situation". Germany's Federal Cartel Office has also examined the relationship between the two companies.
- The EU is inviting views from stakeholders on the level of competition in the context of virtual worlds and generative AI, and how competition law can help ensure these new markets remain competitive.
- Digital rights and pro-competition groups are urging competition regulators to act against anti-competitive behaviour in AI to prevent oligopolistic control from being extended further.