Microsoft’s 
MSFT a huge investment of $13 billion in OpenAI Co., Ltd. will not be subject to formal investigation by the European Union’s merger watchdog, alleviating concerns about possible regulatory intervention.
The European Commission concluded that the partnership does not amount to an acquisition and that Microsoft does not exercise control over OpenAI’s operations.
The decision followed scrutiny sparked by revelations of close ties between Microsoft and ChatGPT developers, leading to a review under EU merger regulations, Bloomberg cited sources familiar with the matter.
Also read: Following the EU, Microsoft faces cloud computing antitrust scrutiny in South Africa
However, the EU typically only approves most deals involving unresolved competition issues.
Microsoft referred to previous statements stressing that its partnership with OpenAI fosters innovation and competition while maintaining the independence of both companies.
A European Commission spokesperson stressed the need to establish a permanent change of control between companies to address competition concerns.
UK Competition and Markets Authority (CMA) is scrutinizing the partnership between Microsoft and OpenAI and may investigate their collaboration on potential competition issues.
Microsoft is negotiating Worked with Cloud Infrastructure Service Providers of Europe (CISPE) to resolve complaints filed with the European Union regarding the technology giant’s cloud computing licensing practices.
The complaint, filed by CISPE in late 2022, includes the following: Amazon.com Inc. 
AMZN Twenty-six small cloud providers in the EU are accusing Microsoft of contract terms that negatively impact Europe’s cloud computing market.
Over the past decade, Microsoft has incurred EUR 1.6 billion in EU antitrust fines.
Microsoft stock has risen more than 42% in the past 12 months. Investors can gain exposure to stocks through: SPDR Select Sector Fund – Technology 
XLK and Fidelity MSCI Information Technology Index ETF 
FTEC.
Price action: Microsoft stock was trading 0.73% lower at $411.55 at last check Wednesday.
Disclaimer: This content is created in part using AI tools, and reviewed and published by Benzinga editors.
Microsoft and OpenAI. Photo credit: Shutterstock
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