Microsoft and Amazon's AI Partnerships To Be Investigated By UK Regulators

By Thea Felicity

Apr 24, 2024 10:35 AM EDT

Department Of Homeland Security Led Review Finds Microsoft At Fault For Chinese Hack Last Year — NEW YORK, NEW YORK - APRIL 03: A Microsoft Experience Center is seen on Fifth Avenue on April 03, 2024 in New York City. A Cyber Safety Review Board, created in 2021 by executive order and led by Homeland Security, released a report that detailed lapses by Microsoft that led to a targeted Chinese hack last year of top U.S. government officials’ email that included the email of Commerce Secretary Gina Raimondo.
(Photo : Photo by Michael M. Santiago/Getty Images)

British antitrust regulators are initiating an inquiry into the collaborative ventures between tech giants Microsoft and Amazon and smaller artificial intelligence (AI) firms, inviting comments from concerned parties to evaluate the implications of these partnerships, per CNBC.

Specifically, the Competition and Markets Authority (CMA) has opened discussions on Microsoft's association with French AI company Mistral, Amazon's investment in U.S. startup Anthropic, and Microsoft's recruitment of former Inflection AI employees. This inquiry marks the preliminary phase preceding a formal review, aiming to ascertain whether these agreements constitute mergers.

Microsoft's recent investment in Mistral and Amazon's funding of Anthropic are under particular scrutiny. In their defenses, Microsoft emphasizes that such collaborations foster competition rather than signify mergers, while Amazon presses the unique nature of its collaboration with Anthropic.

Why The AI Partnerships Are Under Scrutiny

The AI partnerships between Microsoft, Amazon, and smaller AI firms were given concerns related to competition and potential anti-competitive practices. The British antitrust regulators are investigating these partnerships to assess whether they could result in mergers or hinder fair competition in the AI market.

These partnerships also raise questions about their impact on market dynamics, innovation, and consumer choice within the AI industry. The CMA aims to gather insights from stakeholders to evaluate whether these collaborations align with regulatory standards and whether they could potentially stifle competition or create monopolistic advantages for the involved parties.

Regulators are keen to ensure a level playing field in the market and prevent any practices that could undermine fair competition or harm consumers' interests. Therefore, they closely monitor these partnerships to ensure compliance with competition laws.

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