EU launches investigation into Microsoft over security software practices and investment in Mistral AI

European Union regulators are reportedly investigating Microsoft for restricting customers’ use of competing security software and investment in artificial intelligence company Mistral AI.

According to The Information, the initial investigation concerns claims that Microsoft prevents customers from purchasing security software from competitors. The European Commission, the EU’s competition watchdog, has recently found out that Microsoft’s Entra ID software (previously known as Azure Active Directory), and in particular that Microsoft does not allow Office 365 customers to use alternative security products. It is said that an investigation is underway.

On the AI ​​front, Politico reported that the EC plans to explore Microsoft’s new partnership with French artificial intelligence company Mistral.

Mistral and Microsoft announced a new partnership on Monday that will give Mistral engineers access to supercomputing infrastructure in Azure and Microsoft will provide customers with access to Mistral’s large-scale language models on its cloud platform. Then he announced. As part of the deal, Microsoft also revealed that it will invest 15 million euros ($16.3 million) in the company, which will be converted into equity in the startup’s next round of funding.

At the time of the announcement, it was pointed out that Microsoft was downplaying the investment, partly due to the possibility that the EC would consider the deal. Now, it’s EC.

“The European Commission is investigating agreements entered into between large digital market participants and generative AI developers and providers,” EC spokesperson Lee Zuber said in a statement. “In this regard, we have received the mentioned agreement and will analyze it.”

The new study represents another hurdle for Microsoft in the rapidly evolving AI market. In December, the UK Competition and Markets Authority launched a similar review of Microsoft’s investment in OpenAI. The CMA is seeking to determine whether Microsoft’s investment in OpenAI falls within a so-called related merger situation, where the two companies become “no longer distinct” or are approaching such an outcome.

The US Federal Trade Commission is also reportedly considering a partnership between Microsoft and OpenAI. Investigation into the partnership is reportedly in the preliminary stages.

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