DOJ and FTC Probe Microsoft’s OpenAI Deal

• DOJ, FTC discuss OpenAI’s Microsoft deal probe.
• $10B Microsoft investment prompts US, EU antitrust scrutiny.
• Jurisdiction dispute ongoing in Microsoft-OpenAI investigation.

U.S. Department of Justice (DOJ) and the Federal Trade Commission (FTC) are reportedly engaged in discussions to determine which agency will investigate OpenAI on potential antitrust grounds. The focus of the probe centers on OpenAI’s collaboration with Microsoft, which came under scrutiny after the tech giant committed to a substantial investment of over $10 billion in the artificial intelligence firm last year.

According to sources familiar with the matter, both U.S. regulatory bodies are reluctant to cede jurisdiction, leading to ongoing talks initiated by the FTC months ago. The discussions are primarily centered around Microsoft’s partnership with OpenAI, and not part of a broader dialogue on investigating wider artificial intelligence issues.

Antitrust concerns surrounding Microsoft’s investment in OpenAI have not been confined to the United States. Earlier this month, European Union antitrust regulators hinted at a possible review under EU merger rules, echoing a similar warning issued by Britain’s antitrust regulator in December.

Microsoft, when approached for comment, declined to provide a statement on the ongoing investigation. Similarly, a spokesperson for the Justice Department refrained from commenting on the matter. The FTC, however, emphasized the effectiveness of its joint clearance process with the DOJ in protecting American consumers from potential consequences such as higher prices and unfair competition.

This latest development follows a report from July of the previous year, revealing that the FTC had initiated an investigation into whether OpenAI had violated consumer protection laws. The investigation reportedly involved a demand for records.

As tensions persist between the DOJ and FTC over jurisdictional authority, the unfolding probe into Microsoft’s OpenAI deal remains a focal point in the broader scrutiny of tech industry partnerships and potential anticompetitive practices.

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