UK competition watchdog drops Microsoft-OpenAI probe

Published On Mar 5, 2025, 12:33 PM

The UK's Competition and Markets Authority (CMA) has concluded its investigation into Microsoft's partnership with OpenAI, deciding that while Microsoft does exert significant influence over OpenAI's commercial policy, it does not control it fully. This means the partnership does not require review under merger regulations. Critics, however, argue that this outcome reflects a political shift towards encouraging tech growth rather than strict regulation. Microsoft welcomed the decision, asserting that their partnership with OpenAI promotes competition and innovation in AI development.

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With the CMA's decision removing regulatory uncertainties around Microsoft's partnership with OpenAI, this could enhance investor confidence in Microsoft’s growth potential and the viability of its AI offerings going forward.

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