Microsoft's (NASDAQ:MSFT) $13 billion investment in ChatGPT-owner OpenAI is under scrutiny from the European Union, potentially leading to a comprehensive merger probe.
The European Commission is investigating whether this substantial investment falls within the EU's merger rules, with a formal probe possible if it meets the necessary conditions, Bloomberg News reported today.
This follows a similar move by the UK's Competition and Markets Authority. Microsoft's significant investment in OpenAI has solidified its dominance in AI, integrating OpenAI's products across its core businesses and outpacing competitors like Alphabet's Google.
“We are inviting businesses and experts to tell us about any competition issues that they may perceive in these industries, whilst also closely monitoring AI partnerships to ensure they do not unduly distort market dynamics.,” a statement from Margrethe Vestager, the EU’s competition commissioner, said, according to Bloomberg News.
Microsoft stock fell 0.5% in early New York trading on Tuesday.