The United States and United Kingdom's consumer watchdogs have both turned their gaze toward Microsoft's $10 billion investment in ChatGPT developer OpenAI over the possibility that it runs afoul of antitrust law.
The Federal Trade Commission and the U.K.-based Competitions and Markets Authority are both initiating investigations into Microsoft's investments in OpenAI, according to Bloomberg. The FTC's inquiry is preliminary, according to staffers involved. The CMA stated on Friday that it is gathering information from stakeholders to determine if the partnership will stifle competition.
FDA APPROVES WORLD'S FIRST CRISPR GENE-EDITING DRUG FOR SICKLE-CELL DISEASE
Microsoft's investment in OpenAI has been notably successful, allowing it to add the innovative chatbot to several services, including Bing and the web browser Edge. However, the fact both agencies are pursuing this investigation concurrently reveals a strong interest in whether OpenAI's market prominence could be viewed as anti-competitive.
The FTC declined to comment. Microsoft did not respond to requests for comment from the Washington Examiner.
The FTC is already investigating OpenAI over allegations that its product had violated consumer protection laws by placing personal reputations and data at risk. The commission's chairwoman, Lina Khan, has spoken about her AI worries. Enforcers and regulators "need to be vigilant early" when it comes to AI, Khan has said.
CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER
Microsoft has also been in battle with the FTC over its purchase of Call of Duty developer Activision-Blizzard in early 2021. The FTC initially moved to block the Microsoft deal, pushing it to trial. Judge Jacqueline Scott Corley in San Francisco ruled in favor of Microsoft in July, arguing that the FTC "has not shown a likelihood it will prevail on its claim this particular vertical merger in this specific industry may substantially lessen competition."
The agency hasn't given up the fight yet and intends to challenge the deal post-finalization through its internal administrative court. The European Union, in contrast, approved the deal on first review.