WASHINGTON (dpa-AFX) - On Tuesday, the executive arm of the EU, the European Commission, announced the initiation of a competition investigation in the virtual world and generative AI markets. The purpose of this inquiry is to assess the competition level and the impact of competition law within these domains.
The Commission revealed that it is examining agreements that may have been made between 'large digital market players' and generative AI developers, citing the Microsoft (MSFT) and OpenAI deal as an example. It also mentioned that requests for information have been sent to these major digital market players, with the deadline for their responses set for March 11.
The agency said, 'The European Commission is checking whether Microsoft's investment in OpenAI might be reviewable under the EU Merger Regulation'.
Margrethe Vestager, European commissioner for competition commented that, 'Virtual worlds and generative AI are rapidly developing. It is fundamental that these new markets stay competitive, and that nothing stands in the way of businesses growing and providing the best and most innovative products to consumers.'
Earlier, the U.K.'s Competition and Markets Authority had also launched a probe into Microsoft's investment in OpenAI. The U.S. Federal Trade Commission is also looking into the same deal, according to a Bloomberg report.
Last year, Germany's Federal Cartel Office had also looked into this tie-up in which it concluded that the cooperation between Microsoft and OpenAI was not 'currently' subject to merger control but it would be re-examined if Microsoft increased its investments in OpenAI.
The tech giant initially invested $1 billion in OpenAI in 2019. Last year, it invested $10 billion in the ChatGPT creator, raising its total investment in the latter to around $13 billion.
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