The UK Competition and Markets Authority (CMA) has concluded that Microsoft’s partnership with OpenAI does not qualify for investigation under the merger provisions of the Enterprise Act 2002. The CMA reviewed whether the partnership had resulted in a relevant merger situation, particularly focusing on whether Microsoft’s level of control over OpenAI had shifted from material influence to de facto control. After considering the available evidence, including Microsoft’s investment, governance involvement, and supply of computing infrastructure, the CMA found no change in control. The investigation determined that Microsoft does not control OpenAI’s commercial policy, but instead exerts significant material influence.
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