FTC and UK CMA Investigate Microsoft’s OpenAI Investment for Antitrust Violations

IIIT-Hyderabad researchers have uncovered a potential security flaw in Android password managers that could allow hackers to steal users’ account details. Google has responded to the findings by addressing the issue. The UK’s Competition and Markets Authority (CMA) has also initiated a review of Microsoft’s investment in OpenAI, and now the US Federal Trade Commission (FTC) is reportedly considering examining the deal for potential antitrust violations. The concerns are rooted in the potential impact on competition in the field of artificial intelligence (AI). Bloomberg reports that the FTC is currently conducting a preliminary inquiry into Microsoft’s $13 billion investment in OpenAI and is assessing its options. OpenAI’s status as a non-profit organization may present a hurdle for the FTC, as non-corporates are not legally required to report such transactions. The CMA’s review in the UK will assess whether Microsoft’s partnership with OpenAI has resulted in an acquisition of control and the material influence of one party over another. The outcome of these investigations may have significant implications for the future of AI, potentially leading to restrictions on Microsoft’s investment or even the unwinding of the partnership. These inquiries are likely to set a precedent for the scrutiny of similar deals in the AI space.