UK Competition Authority Ends Review of Microsoft-OpenAI Partnership

The CMA concluded Microsoft’s influence over OpenAI does not amount to de facto control, removing the partnership from merger investigation jurisdiction.

The UK’s Competition and Markets Authority (CMA) determined that Microsoft’s $13 billion investment in OpenAI gives it material influence but not de facto control over the AI company.
The CMA’s decision means the partnership does not qualify for further scrutiny under UK merger laws, though it noted this does not eliminate all competition concerns.
Recent developments, such as OpenAI securing independent cloud deals and Microsoft renegotiating its exclusivity agreements, were key factors in the decision.
The CMA’s review was initially prompted by Microsoft’s role in OpenAI’s 2023 CEO reinstatement, which raised questions about its governance influence.
This decision aligns with similar rulings by other global regulators, including the European Commission, which found no evidence of anti-competitive control in the partnership.