FTC Launches Preliminary Antitrust Review of Microsoft's OpenAI Investment
The Federal Trade Commission examines whether Microsoft's $13 billion investment in OpenAI violates antitrust laws, though a formal investigation remains unopened. UK regulators simultaneously gather information to evaluate potential competition threats from the deep partnership.
The US Federal Trade Commission examines the nature of Microsoft's $13 billion investment in OpenAI to determine whether it violates antitrust laws. These inquiries remain preliminary and the agency does not open a formal investigation yet, according to a person familiar with the confidential matter. Microsoft avoids reporting the transaction to regulators because OpenAI operates as a non-profit, meaning the investment does not constitute legal control under US merger law.
Agency officials analyze the situation and assess their regulatory options as FTC Chair Lina Khan maintains a vigilant stance on transformative artificial intelligence tools. This preliminary scrutiny occurs alongside a separate consumer protection probe into OpenAI, which questions whether ChatGPT puts user reputations and data at risk. Khan also continues the agency's ongoing legal challenge against Microsoft's $69 billion acquisition of Activision Blizzard.
International regulators simultaneously scrutinize the massive tech partnership as the UK's Competition and Markets Authority gathers stakeholder information. The UK authority evaluates whether the collaboration between the two firms threatens competition in a market that includes Google's AI research lab Deepmind. The agency accepts public comments until January 3 before making a decision on launching a formal investigation.