UK Watchdog Clears Microsoft-OpenAI Partnership Amidst Controversy

The UK Competition and Markets Authority (CMA) has concluded its investigation into Microsoft’s relationship with OpenAI, marking a significant decision in the tech landscape. Initiated in December 2023, the probe aimed to assess whether Microsoft’s substantial investment and influence over OpenAI changed after the turbulent firing and quick re-hiring of OpenAI’s CEO, Sam Altman. Despite concerns of Microsoft’s growing control over OpenAI’s commercial policies, the CMA determined that their partnership does not constitute a merger under UK’s regulatory rules, stating that Microsoft’s influence does not equate to full control. Critics, including digital rights group Foxglove, have expressed discontent, suggesting that the decision reflects a broader political shift under the new leadership of the CMA, driven by government calls for economic growth. This change in regulatory stance is viewed as potentially favoring Big Tech’s interests, raising alarms about competition in an already concentrated tech market. In response, Microsoft welcomed the CMA’s findings, asserting that the collaboration promotes competition and innovation.