Microsoft and Google Again in the EC Crosshairs

AI deals from Microsoft and Google are parts of new European Commission investigations. Microsoft’s partnership with OpenAI and Google’s deal to install its GenAI capabilities on Samsung devices attracted antitrust scrutiny from the EC.

EC Executive Vice President for Competition Policy Margrethe Vestager said it would send Microsoft and OpenAI follow-up questions under antitrust rules to understand whether certain exclusivity clauses could harm competitors. A representative for Microsoft said that the company stands ready to respond to any additional questions the Commission may have. The antitrust regulator is 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.

The EC concluded in April that Microsoft’s $13 billion investment in OpenAI did not violate EU merger rules as the former did not gain control over the latter. Vestager added the EC will keep monitoring the relationships between all the key players in this fast-moving sector, including Microsoft and OpenAI. She stated the EC is also concerned that big tech companies’ AI partnerships could make it difficult for smaller AI developers to reach users, which is why the EC is seeking additional information from Google about its Samsung partnership.

She noted the EC is also monitoring ‘acqui-hires’ where a company takes over another mainly for its employees, citing Microsoft and Inflection AI as a primary example. “The commercialization of AI and its powerful tools is going to be led by a few companies that already have a lot of market power,” Vestager said. “So we remain vigilant.”