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UK watchdog drops competition review of Microsoft’s OpenAI partnership

  • The UK’s competition watchdog will not hold a formal investigation into Microsoft’s partnership with OpenAI, stating that Microsoft has "material influence" over OpenAI but does not control it.
  • The Competition and Markets Authority (CMA) found that Microsoft acquired material influence over OpenAI in 2019 but did not exercise de facto control, hence not meeting the threshold for an official inquiry.
  • The CMA's decision is not a clean bill of health on competition concerns, but it also avoids creating a chilling effect on business confidence in the UK.
  • Despite concerns over Doug Gurr's appointment as the CMA's interim chair, the CMA has targeted big tech with investigations on Google and is conducting a separate inquiry on the impact of Apple and Google's mobile platforms.

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