The European Commission has warned that Microsoft’s extensive backing of ChatGPT company OpenAI may be subject to EU antitrust rules.

In a statement which calls for contributions on competition in virtual worlds and generative AI, the European Commission said that it “is checking whether Microsoft's investment in OpenAI might be reviewable under the EU Merger Regulation”.

The note from the Commission echoes a similar warning from the UK’s Competition and Markets Authority (CMA) which last month said that it is “considering whether it is or may be the case that Microsoft’s partnership with OpenAI, or any changes thereto, has resulted in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002 and, if so, whether the creation of that situation may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.”

Microsoft last year committed to invest over $10 billion into OpenAI and took a non-voting position on the board following a tumultuous weekend in which the company fired and re-hired its chief exec Sam Altman.

The company said that it does not own any portion of OpenAI.

In its statement, the European Commission also said that it is looking into some of the agreements that have been concluded between large digital market players and generative AI developers and providers, and that it is investigating the impact of these partnerships on market dynamics.

No other companies are named in the European Commission’s statement, with interested parties given until 11 March to give feedback on the wider investigation into competition in virtual worlds and generative AI.

Margrethe Vestager, the EU antitrust chief who this week is set to meet with a number of US big tech execs in San Francisco, said: “It is fundamental that these new markets stay competitive, and that nothing stands in the way of businesses growing and providing the best and most innovative products to consumers.

“We are inviting businesses and experts to tell us about any competition issues that they may perceive in these industries, whilst also closely monitoring AI partnerships to ensure they do not unduly distort market dynamics.”

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