UK Regulator Scrutinizes Microsoft-OpenAI Partnership

The UK Competition and Markets Authority is considering whether the partnership constitutes a 'relevant merger situation' that could stifle competition.

Microsoft's partnership with OpenAI is under scrutiny by the UK Competition and Markets Authority (CMA), which is considering whether the partnership constitutes a 'relevant merger situation' that could stifle competition.
Microsoft obtained a non-voting position on OpenAI’s board following the dramatic ousting and return of OpenAI chief Sam Altman.
The CMA's announcement follows the regulator's approval of Microsoft’s $69 billion acquisition of Activision Blizzard, after a hefty review process that ended with Microsoft agreeing to sell off a small part of the business.
Microsoft's vice chair and president Brad Smith insists that Microsoft's new board seat is 'very different from an acquisition', and that the two companies have maintained their independence.
The inquiry represents the first time regulators are challenging the $10 billion deal between the two companies, and it could result in interest from other major regulatory powers.