The UK Competition and Markets Authority (CMA) is actively assessing the nature of Microsoft's (NASDAQ:MSFT) collaboration with OpenAI, the regulator said today.
The CMA is examining whether this partnership, or any modifications to it, has given rise to a pertinent merger scenario as outlined in the Enterprise Act 2002.
The CMA aims to determine if such a situation may potentially lead to a significant reduction in competition within specific markets for goods or services in the United Kingdom.
Hence, the regulator is initiating an early stage for the involved parties and other interested entities to express their views on whether the collaboration between Microsoft and OpenAI, including recent updates, has led to a significant merger situation.
This call for comments precedes the formal launch of a phase 1 investigation, marking the initial phase in the CMA's information-gathering process.
Last month, Microsoft announced it will have a non-voting board seat at OpenAI.
Microsoft shares fell 0.5% on the report.