Microsoft's $13 Billion OpenAI Tie-Up Cleared by UK Watchdog

Yahoo

07-03-2025

(Bloomberg) -- Microsoft Corp.'s $13 billion investment into OpenAI Inc. was cleared by the UK's antitrust watchdog, ending months of uncertainty over the tie-up.
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The Competition and Markets Authority said that the 2023 deal doesn't qualify for a full investigation under merger rules. The CMA said in 2023 it intended to look at whether the partnership gave either of the two firms more control and influence over another.
The decision, after around 14 months of scrutiny, removes one UK regulatory uncertainty for Microsoft, which faces a continued investigation into its cloud service offerings. It also comes weeks after the US Federal Trade Commission raised concerns that the deal could extend Microsoft's dominance in cloud computing into the nascent artificial intelligence market.
'The CMA found that while Microsoft did acquire material influence over OpenAI in 2019, there has not been a change of control by Microsoft,' the CMA said in a statement.
Microsoft's bet on OpenAI gave the software maker an early lead over its Big Tech rivals by integrating its products into virtually every corner of its core businesses. Microsoft and Apple Inc. last year dropped plans to take board roles at OpenAI in a decision that underscored the growing regulatory scrutiny.
There has been mounting government pressure for regulators to speed up decision making, cut red tape and allow more risk to spur the economy. That led to the ouster of its chairman in favor of ex-Amazon Inc. executive Doug Gurr, and a strategic steer too focus on speeding up the decision-making process on interventions, giving more certainty for investors.
'We are not blind to the length of time that this investigation has taken,' Joel Bamford, the CMA's executive director of mergers, said in a LinkedIn post.
The degree of complexity, the changing nature of the partnership and continued dialogue with the companies led to 'an exceptionally extended period of review,' Bamford said on Wednesday.
The CMA's review was part of attempts by global regulators to ensure Big Tech's investments into the AI industry don't distort the market or lead to a handful of all-powerful firms. The agency voiced its concerns about what it called an 'interconnected web' of partnerships and investments in the AI ecosystem. It previously cleared Google's partnership with AI firm Anthropic.
'We are focused on developing AI that is safe and beneficial for everyone,' OpenAI said in a statement. Microsoft's partnership with OpenAI and its continued evolution promote competition, a Microsoft spokesperson said after the decision.
(Updates comments from Microsoft, OpenAI and CMA)
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