Reuters initially reported that EU regulators were developing a case that might result in an examination of the two companies’ cooperation.
According to Vestager, the European Commission oversees EU competition enforcement and will not investigate Microsoft’s collaboration with OpenAI under EU merger regulations since the former has not taken control of the latter.
The parent company of OpenAI is a nonprofit, but Microsoft has invested $13 billion, or 49% of the company, in a for-profit subsidiary.
Vestager also expressed worries that smaller AI developers may find it challenging to connect with consumers due to Big Tech’s AI alliances.
“We are also sending requests for information to better understand the effects of Google’s arrangement with Samsung to pre-install its small model Gemini Nano on certain Samsung devices,” she stated.
In January, Google and the South Korean company struck a multi-year agreement to integrate their generative artificial intelligence technology into Samsung’s Galaxy S24 series smartphones.
Vestager added that she was investigating ‘acqui-hires’, a practice that sees a company buy another primarily for its talent. Microsoft purchased startup Inflection for $650 million in March, allowing it to use Inflection’s models and employ the majority of its workforce.
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