Microsoft’s Mistral AI pact avoids UK antitrust scrutiny
The cooperation of Microsoft Corp. with artificial intelligence company Mistral AI will avoid a UK antitrust investigation after the watchdog said it did not qualify for an investigation.
The Competition and Markets Authority said Microsoft did not have the ability to “significantly influence” Mistral’s commercial policy and the CMA closed the case.
Britain’s deals watchdog announced last month that it was gathering information about the partnership to see whether it threatened domestic competition. It also opens initial investigations into Microsoft’s deal with Inflection AI and Amazon.com Inc’s Anthropic investment.
Microsoft’s partnership with OpenAI Inc. is also in the initial investigation process of this agency. That partnership was designed to avoid European scrutiny, with regulators not seeing the need for a formal investigation as it did not fit the definition of a takeover.
Microsoft welcomed Friday’s decision and said that investment and collaboration are essential for new players in the AI economy.
Read more: Microsoft, Amazon AI Offers Receive UK Antitrust Scrutiny
The CMA is scrutinizing Big Tech firms’ investments in AI startups after an investigation uncovered a “connected web” of industry partnerships and investments. Young businesses could allow them to shape the market and raise competition concerns.
It signaled that it would use its powers under merger control rules to decide whether some of these transactions should come under UK supervision, noting that some relationships partnership is not structured like a traditional agreement.
Camilla de Coverly Veale, Policy Director at the Startup Alliance said: “It’s great to see the CMA have recognized this as a real reach. “This is exactly why considering the good and bad in AI partnerships more generally before jumping in is better for an ecosystem that wants less uncertainty.”
With support from Mark Bergen.
This article was generated from an automated news agency feed without modifications to the text.
