CMA Concludes Microsoft and OpenAI's Collaboration Falls Outside Merger Review

The UK's Competition and Markets Authority (CMA) has made a significant announcement regarding the partnership between Microsoft and OpenAI. After a thorough investigation that began in December 2023, the CMA has determined that this collaboration does not constitute a merger and, therefore, does not fall under its jurisdiction for review.

Key Areas of Assessment

In its detailed report, the CMA examined three critical aspects of the partnership: Microsoft's investment and its role in OpenAI's governance, the provision of computing power by Microsoft, and the intellectual property and commercialization rights involved. The regulator concluded that Microsoft does not exert control over OpenAI's commercial policies.

Conclusion of the Inquiry

After meticulously reviewing the evidence, the CMA found that no "relevant merger situation" was established by the partnership. This decision marks the end of the inquiry into the Microsoft-OpenAI collaboration, providing clarity on the regulatory status of such innovative partnerships in the tech industry.