Microsoft faces UK antitrust investigation over hiring of Inflection AI staff

UK regulators are present formally investigating Microsoft’s hiring of Inflection AI staff, months aft astir of Inflection’s unit joined Microsoft’s caller AI division. The UK’s Competition and Markets Authority (CMA) is present opening up a signifier 1 merger probe into the partnership, with a September 11th deadline implicit whether the probe volition advancement into a 2nd phase.

If the lawsuit progresses to the signifier 2 signifier past it could contiguous a stumbling artifact for Microsoft’s AI ambitions. The CMA past signaled a more in-depth review of Microsoft’s $68.7 cardinal acquisition of Activision Blizzard successful 2022, yet forcing the institution to restructure its woody and springiness up key unreality gaming rights in the UK and galore different markets worldwide. It’s inactive aboriginal days for the CMA’s Inflection AI investigation, but the results could person an interaction acold beyond conscionable the UK.

Regulators successful the UK and EU person been progressively looking astatine the AI partnerships and investments that Big Tech are making. The CMA besides signaled involvement successful Microsoft’s Mistral AI partnership, but decided that it didn’t suffice for investigation nether its merger rules.

Microsoft was besides precocious charged with EU antitrust violations for bundling its Teams app with Office 365 and Microsoft 365 subscriptions. If Microsoft is recovered blameworthy of antitrust violations successful the EU, the steadfast could look a good of up to 10 percent of the company’s yearly worldwide turnover. Microsoft besides precocious reached a settlement with a unreality manufacture radical successful Europe to debar a imaginable antitrust battle.