"MS's Investment in OpenAI May Be Subject to EU Commission's Antitrust Investigation"

Microsoft (MS) has invested $13 billion in OpenAI, the developer of ChatGPT, which is not subject to a merger and acquisition (M&A) investigation by European Union (EU) regulators but is reportedly facing potential antitrust scrutiny.

On the 18th (local time), sources cited by major foreign media said, "The EU Commission is building a case regarding corporate investments," adding that MS's $13 billion investment in OpenAI could be subject to an antitrust investigation. However, the sources added, "Nothing has been decided yet, and an investigation may ultimately not take place."

MS has reportedly invested a total of $13 billion, including $10 billion last year, through a partnership with OpenAI since 2019, holding a 49% stake. In January, the EU Commission indicated the possibility of an investigation by stating it would "examine whether MS's investment in OpenAI could be reviewed under EU merger regulations."

Regarding this, Bloomberg reported on the 17th that "EU regulators will not initiate a formal merger investigation into the partnership between MS and OpenAI." An EU Commission spokesperson said, "More evidence of a sustained change in control between the two companies is needed to start a formal investigation."

However, MS's investment in OpenAI could still be subject to antitrust scrutiny. In such a case, the partnership between the two companies could be examined to determine whether it hinders fair competition within the EU market. The EU Commission also hinted at a preliminary investigation into potential antitrust violations concerning MS's investment earlier this year in the French startup Mistral AI.

Additionally, the UK Competition and Markets Authority (CMA), the U.S. Department of Justice, and the Federal Trade Commission (FTC) are also closely examining whether the partnership between MS and OpenAI undermines fair market competition.