Why EU is probing Microsoft-OpenAI and Google-Samsung AI deals
The European Union (EU) antitrust regulators have reportedly begun investigating artificial intelligence (AI) partnerships between tech giants for potential violations. The partnerships under scrutiny include Microsoft's collaboration with OpenAI and Google's agreement with Samsung. The primary concern revolves around exclusivity clauses in these agreements that could potentially hinder competition in the rapidly growing AI sector.
EU seeks third-party views on AI partnerships
EU competition chief Margrethe Vestager has announced that regulators will seek third-party views on these investigations. In March, Vestager sent questionnaires to Microsoft, Google, Meta's Facebook, and ByteDance's TikTok regarding their AI partnerships. "We have reviewed the replies, and are now sending a follow-up request for information on the agreement between Microsoft and OpenAI," she stated at a conference.
Vestager expresses concern over Big Tech's AI practices
Vestager has voiced concerns about big tech companies potentially blocking smaller AI firms from reaching users and businesses. She clarified that Microsoft-OpenAI partnership would not be subject to EU merger rules due to the absence of control. However, she is investigating "acqui-hires," where a company acquires another primarily for its talent, such as Microsoft's $650-million purchase of AI startup Inflection in March.
Google's arrangement with Samsung also under scrutiny
In addition to Microsoft and OpenAI, Vestager mentioned that the EU is also seeking information about Google's arrangement with Samsung. The focus is on understanding the effects of pre-installing Google's small model Gemini Nano on certain Samsung devices. This comes after Google reached a multi-year deal earlier this year to embed its generative artificial intelligence technology in Samsung's Galaxy S24 series smartphones.
