EU scrutinizes tech giants' AI partnerships for anticompetitive practices

European Union antitrust regulators are closely examining collaborations between tech giants and artificial intelligence (AI) companies. Microsoft's partnership with OpenAI and Google's alliance with Samsung are currently under investigation due to concerns over potential anticompetitive practices.

The European Commission is soliciting feedback from external parties to evaluate the impact of these agreements on market competition. This regulatory scrutiny reflects a global trend of authorities expressing unease about Big Tech firms leveraging their market power to gain an edge in cutting-edge technologies.

Margrethe Vestager, the EU's competition chief, has launched inquiries into AI partnerships involving major players such as Microsoft, Google, Meta, and ByteDance. Of particular concern is Microsoft's investment in OpenAI, which has raised worries about exclusivity clauses that could stifle competition.

Despite Microsoft's substantial stake in OpenAI's for-profit arm, the partnership falls outside EU merger regulations as Microsoft does not exert control over OpenAI. Vestager has also highlighted fears about large tech companies obstructing smaller AI developers' access to users and businesses.

The investigation extends to Google's collaboration with Samsung to embed AI technology into Samsung devices and the practice of 'acqui-hires,' where companies acquire others primarily for their talent. The EU's objective is to prevent these practices from circumventing merger control rules and creating monopolistic concentrations in the tech sector.

The regulatory scrutiny of AI partnerships underscores the necessity of oversight in the rapidly evolving landscape of technology collaborations. By ensuring fair competition and access for all players in the market, regulators aim to promote innovation and prevent monopolistic behavior among tech giants.