UK Competition Regulator Clears Microsoft's Inflection AI Deal

The CMA's investigation found no significant competition concerns despite designating the transaction as a merger.

Microsoft's hiring of Inflection AI staff and other arrangements qualify as a merger under UK law.
The Competition and Markets Authority (CMA) ruled the deal does not significantly lessen competition.
Inflection AI's limited market presence influenced the decision to clear the transaction.
The CMA is scrutinizing similar deals involving major tech companies and AI startups.
Future tech partnerships may face increased regulatory oversight.