1. Microsoft won’t be facing antitrust scrutiny in the UK for its investment in Mistral AI.
2. There is growing oversight on Big Tech’s use of “quasi-mergers” to control new technologies.
3. The UK’s Competition and Markets Authority has found that Microsoft’s partnership with Mistral AI does not give it material influence over the startup, but other cases are still pending.
The U.K.’s Competition and Markets Authority (CMA) has decided not to investigate Microsoft’s investment in Mistral AI, a French startup, under the merger provisions of the Enterprise Act 2002, concluding that the partnership does not qualify for scrutiny. This comes in the wake of increased antitrust scrutiny on Big Tech’s investments in emerging AI firms through what is termed as “quasi-mergers,” a tactic to gain influence over new technologies without outright acquisitions. The Federal Trade Commission has also launched investigations into similar practices by Alphabet, Amazon, and Microsoft.
While the CMA’s investigation into Microsoft’s partnership with Mistral AI did not warrant further scrutiny, there are still ongoing probes into Amazon’s investment in Anthropic and Microsoft’s hiring of Inflection AI’s team. The CMA and other regulatory bodies are closely monitoring the growing influence of Big Tech in the AI sector to ensure fair competition and innovation.
Microsoft’s minimal investment in Mistral AI does not grant it enough influence to warrant antitrust scrutiny, according to competition partner Alex Haffner. However, the CMA’s investigation into other AI partnerships involving Big Tech is still ongoing, with further announcements expected in the near future. Overall, regulatory authorities are closely monitoring developments in the AI sector and taking steps to ensure fair competition.