U.K. regulators said they are examining Microsoft’s partnership with OpenAI, marking a first push by one of the world’s most influential competition authorities to scrutinize the relationship between the tech giant and the artificial intelligence company behind ChatGPT. Britain’s Competition and Markets Authority said Friday that it is seeking feedback on whether the partnership—and recent developments in the governance of OpenAI—should be considered a de facto merger, in an initial step that could lead to a formal investigation. The move comes after a dramatic turn of events at OpenAI that resulted in the abrupt firing and reinstatement of Chief Executive Sam Altman and the creation of an observer role for Microsoft on OpenAI’s board of directors. The CMA said recent developments in the company’s governance played a role in the decision to probe the relationship. Microsoft is OpenAI’s largest backer and had already invested some $13 billion in OpenAI before the boardroom drama. The U.K. authority issued an invitation on Friday for comments on the relationship between the two companies and whether their partnership should be viewed as a merger. If the watchdog determines that the relationship meets its criteria for a merger review, that could prompt a formal investigation into whether it creates competition concerns in the artificial intelligence market. Such an investigation—if it proceeds—could lead to an order for the two companies to separate or make other structural or behavioral changes. Microsoft said its partnership with OpenAI, which began in 2019, has preserved the independence of both companies and fostered AI innovation and competition.

Full story : British antitrust watchdog to probe Microsoft and OpenAI’s relationship amid possible competition concerns.