UK Competition Authority Concludes Microsoft Has No Control Over OpenAI

The UK competition watchdog, the Competition and Markets Authority (CMA), has ended its investigation into the partnership between Microsoft and OpenAI.

The probe, initiated in December 2023, was focused on whether Microsoft’s involvement with OpenAI, particularly after the firing and rehiring of Sam Altman, gave the company excessive control over OpenAI’s commercial policy. Despite Microsoft’s significant investment in OpenAI, the CMA concluded that no change of control had occurred and that the partnership does not warrant review under the UK’s merger rules. Critics, including the digital rights group Foxglove, argue that this decision reflects the CMA’s shift towards a more pro-growth stance. Microsoft welcomed the CMA’s conclusion, emphasising the partnership’s role in promoting competition and innovation.