{"id":85245,"date":"2024-07-01T15:37:25","date_gmt":"2024-07-01T15:37:25","guid":{"rendered":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/07\/01\/ai-deals-between-microsoft-and-openai-google-and-samsung-under-eu-scanner\/"},"modified":"2024-07-01T15:37:25","modified_gmt":"2024-07-01T15:37:25","slug":"ai-deals-between-microsoft-and-openai-google-and-samsung-under-eu-scanner","status":"publish","type":"post","link":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/07\/01\/ai-deals-between-microsoft-and-openai-google-and-samsung-under-eu-scanner\/","title":{"rendered":"AI Deals Between Microsoft and OpenAI, Google and Samsung, Under EU Scanner"},"content":{"rendered":"
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Microsoft’s<\/a> partnership with OpenAI<\/a> could face an EU<\/a> antitrust investigation as regulators singled out their exclusivity clauses while Google’s<\/a> artificial intelligence deal with Samsung<\/a> also triggered scrutiny.<\/p>\n

EU antitrust regulators will seek additional third-party views, EU competition chief Margrethe Vestager said on Friday.<\/p>\n

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.<\/p>\n

Vestager in March sent questionnaires to Microsoft, Google, Meta’s<\/a> Facebook and ByteDance’s TikTok as well as other big tech companies related to their AI<\/a> partnerships.<\/p>\n

“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.<\/p>\n

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.<\/p>\n

“We stand ready to respond to any additional questions the European Commission may have,” a Microsoft spokesperson said.<\/p>\n

Microsoft’s partnership with OpenAI will not be subject to EU merger rules because of the absence of control, Vestager said.<\/p>\n

While OpenAI’s parent is a nonprofit, Microsoft has invested $13 billion (roughly Rs.\u00a01,08,425 crore) in a for-profit subsidiary, for what would be a 49 percent stake.<\/p>\n

Vestager also cited concerns about Big Tech blocking smaller AI developers from reaching users and businesses.<\/p>\n

“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.<\/p>\n

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.<\/p>\n

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 (roughly Rs.\u00a05,422 crore)\u00a0acquisition of startup Inflection in March that allowed it to use Inflection’s models and hire most of its staff.<\/p>\n

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

\u00a9 Thomson Reuters 2024<\/em><\/p>\n\n

Will the Nothing Phone 2 serve as the successor to the Phone 1, or will the two co-exist? We discuss the company’s recently launched handset and more on the latest episode of Orbital<\/a>, the Gadgets 360 podcast. Orbital is available on Spotify<\/a>, Gaana<\/a>, JioSaavn<\/a>, Google Podcasts<\/a>, Apple Podcasts<\/a>, Amazon Music<\/a> and wherever you get your podcasts.<\/em>