“Microsoft’s OpenAI Investment Risks Scrutiny from US, UK Regulators”, Leah Nylen2023-12-08 (OA; backlinks)⁠:

[& UK] The US Federal Trade Commission is examining the nature of Microsoft’s investment in OpenAI Inc. and whether it may violate antitrust laws, according to a person familiar with the matter. The inquiries are preliminary and the agency hasn’t opened a formal investigation, according to the person, who asked not to be named discussing a confidential matter.

Microsoft didn’t report the transaction to the agency because the investment in OpenAI doesn’t amount to control of the company under US law, the person said. OpenAI is a non-profit and acquisitions of non-corporate entities aren’t reported under US merger law, regardless of value. Agency officials are analyzing the situation and assessing what its options are.

…The move by the UK raises the question of whether antitrust regulators in other regions, namely the European Union and the US, will launch similar probes. When asked to comment on the CMA’s move, a European Commission spokesperson said the regulator had been “following the situation of control over OpenAI very closely.”

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