EU to Check Whether , Microsoft’s Investment in OpenAI , Falls Under Merger Rules.<br />On January 9, the European Union announced <br />an investigation to determine if Microsoft's <br />massive investment in OpenAI violates<br />the bloc's merger regulations.<br />On January 9, the European Union announced <br />an investigation to determine if Microsoft's <br />massive investment in OpenAI violates<br />the bloc's merger regulations.<br />TechCrunch reports that the news comes after turmoil<br />at OpenAI which saw the board of directors oust <br />the company's founder and CEO, Sam Altman. .<br />TechCrunch reports that the news comes after turmoil<br />at OpenAI which saw the board of directors oust <br />the company's founder and CEO, Sam Altman. .<br />The surprising decision triggered an <br />aggressive response by Microsoft, which <br />offered to hire Altman and any other OpenAI <br />staffers looking to leave the generative AI company.<br />The surprising decision triggered an <br />aggressive response by Microsoft, which <br />offered to hire Altman and any other OpenAI <br />staffers looking to leave the generative AI company.<br />Ultimately, OpenAI reversed the <br />board's initial decision, bringing Altman <br />back to lead the company.<br />A new board was then formed, which saw <br />the departure of members who had <br />voted in favor of removing Altman.<br />A new board was then formed, which saw <br />the departure of members who had <br />voted in favor of removing Altman.<br />The new board also includes Microsoft <br />representation for the first time in the form <br />of a non-voting, observer member.<br />TechCrunch reports that the high-profile upheaval, <br />combined with Microsoft's major 49% stake in <br />OpenAI, has garnered the attention of regulators.<br />At the close of 2023, the Competition and Markets Authority launched an investigation aimed <br />at deciding if OpenAI and Microsoft are in a , "relevant merger situation.".<br />Last fall, Germany's Federal Cartel Office <br />(FCO) concluded that the business arrangement <br />was not "currently" subject to merger control.<br />If Microsoft were to increase its <br />influence on OpenAI in the future, <br />it would have to be re-examined <br />whether a notification obligation <br />exists under competition law, Germany's Federal Cartel Office (FCO), via TechCrunch
