The UK's Competition and Markets Authority (CMA) has decided against a formal inquiry into Microsoft's partnership with OpenAI, citing that while Microsoft wields material influence due to its $13 billion investment, it does not exercise control over the AI startup. The CMA's assessment follows recent transitions in leadership at OpenAI and addresses concerns raised after significant events affecting its CEO. Although the CMA acknowledged the potential concerns, it clarified that the partnership does not qualify for investigation under current merger control laws, aiming to maintain business confidence amidst regulatory pressures.
The CMA stated that Microsoft has material influence over OpenAI but does not control it, thus no formal investigation will be conducted.
Despite Microsoft's significant investment in OpenAI, it has not attained de facto control over the startup, qualifying their partnership for no review under the UK merger control.
Joel Bamford emphasized that the CMA's decision is not an endorsement of the partnership, rather it's a matter of legal thresholds not being met for a formal inquiry.
CMA's chief executive Sarah Cardell indicated a desire to avoid creating a chilling effect on business confidence while responding to governmental pressures for pro-growth strategies.
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