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Home » Cyber Security News » AI deals between Microsoft and OpenAI, Google and Samsung, in EU crosshairs –

AI deals between Microsoft and OpenAI, Google and Samsung, in EU crosshairs –

AI deals between Microsoft and OpenAI, Google and Samsung, in EU crosshairs –

EU AI investigation is intensifying as European regulators scrutinize major partnerships between Microsoft and OpenAI, and Google and Samsung. The European Commission is examining whether these collaborations contain exclusivity clauses that could limit competition and innovation. This probe highlights the EU’s growing concern that dominant tech companies may leverage their AI power to gain unfair market advantages.

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EU antitrust regulators will seek additional third-party views, EU competition chief Margrethe Vestager said on Friday.

The moves underscore the unease among regulators worldwide on Big Tech leveraging its dominance into the new technology, echoing the companies’ market power in other sectors.

Vestager in March sent questionnaires to Microsoft, Google, Meta’s Facebook and ByteDance’s TikTok as well as other big tech companies related to their AI partnerships.

“We have reviewed the replies, and are now sending a follow-up request for information on the agreement between Microsoft and OpenAI. To understand whether certain exclusivity clauses could have a negative effect on competitors,” she told a conference.

Reuters was first to report that EU regulators were building a case that could lead to an investigation into the partnership between the two companies.

“We stand ready to respond to any additional questions the European Commission may have,” a Microsoft spokesperson said.

Microsoft’s partnership with OpenAI will not be subject to EU merger rules because of the absence of control, Vestager said.

While OpenAI’s parent is a nonprofit, Microsoft has invested $13 billion in a for-profit subsidiary, for what would be a 49% stake.

Vestager also cited concerns about Big Tech blocking smaller AI developers from reaching users and businesses.

“We are also sending requests for information to better understand the effects of Google’s arrangement with Samsung to pre-install its small model Gemini Nano on certain Samsung devices,” she said.

Google in January reached a multi-year deal with the South Korean company to embed its generative artificial intelligence technology in Samsung’s Galaxy S24 series smartphones.

Vestager also said she was looking into “acqui-hires,” where one company acquires another mainly for its talent, as exemplified in Microsoft’s $650-million acquisition of startup Inflection in March that allowed it to use Inflection’s models and hire most of its staff.

“We will make sure these practices don’t slip through our merger control rules if they basically lead to a concentration,” she said.

The EU AI investigation represents a crucial step toward ensuring transparency and fair play in the global AI industry. With Microsoft investing over $13 billion in OpenAI and Google embedding its Gemini Nano in Samsung devices, regulators are determined to prevent monopolistic control. This scrutiny could shape the future of AI governance, influencing how partnerships are structured and how data-driven technologies are regulated.

As artificial intelligence becomes increasingly embedded in daily life—from smartphones to enterprise systems—maintaining ethical standards, accountability, and open competition will define the next phase of digital progress. The EU’s actions could become a blueprint for global AI regulation, setting new precedents for trust and fairness in the tech ecosystem.

 

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