- Britain’s CMA dropped its probe into Microsoft’s $1 billion partnership with OpenAI on Wednesday, March 05, 2025, concluding that Microsoft’s material influence since 2019 does not equate to de facto control under UK merger rules.
- The decision, welcomed by Microsoft as promoting competition and innovation, comes amid broader CMA scrutiny of tech-AI ties and a potential shift in regulatory approach under new interim chair Doug Gurr, despite ongoing investigations into Apple and Google.
Microsoft’s (MSFT) partnership with OpenAI, the force behind ChatGPT, got a green light from Britain’s Competition and Markets Authority (CMA) on Wednesday, March 05, 2025, as the regulator dropped its probe into the tie-up. The CMA concluded that while Microsoft’s $1 billion investment in 2019 gave it material influence over OpenAI, it didn’t amount to de facto control, so the arrangement doesn’t fall under the UK’s merger control rules. This decision closes a chapter of antitrust scrutiny that’s been simmering in both Britain and the U.S., sparked by a relationship that’s evolved since its inception. A Microsoft spokesperson told Reuters they welcomed the outcome, stressing that the partnership – kicked off with that $1 billion stake – drives competition, innovation, and responsible AI development, a sentiment the CMA’s careful review seems to echo, even if it noted the absence of control doesn’t rule out all competition concerns.
The spotlight on this deal intensified in 2023 when OpenAI’s boardroom drama saw CEO Sam Altman briefly ousted and then reinstated, raising eyebrows about the startup’s governance and Microsoft’s role. That episode fueled questions, but the CMA’s findings suggest Microsoft’s influence hasn’t crossed the line into outright dominance. This isn’t the only AI partnership the regulator’s been sizing up—its lens has also turned to Microsoft’s link with Mistral AI, Amazon’s with Anthropic, and Alphabet’s with Anthropic, though none have triggered a full merger probe. The CMA’s been flexing its muscles lately, bolstered by new powers in 2025 to scrutinize tech giants with “strategic market status,” already digging into Apple and Google’s smartphone ecosystems and Google’s search dominance. Yet, the January appointment of Doug Gurr, an ex-Amazon exec, as interim chair hints at a possible softer stance on tech deals ahead, according to analysts and legal experts.
Britain’s decision offers Microsoft some breathing room as it deepens its AI ambitions through OpenAI, a partnership that’s been a cornerstone since that $1 billion bet in 2019. The CMA’s stance – that Microsoft’s sway over OpenAI, while real, stops short of control – keeps the arrangement out of the merger crosshairs, though it leaves the door ajar for broader competition worries. This aligns with the regulator’s broader push to untangle Big Tech’s web of AI alliances, a task that’s grown trickier as startups like OpenAI reshape the industry. Microsoft’s spokesperson framed the CMA’s closure as a win for pragmatism, and with Gurr now steering the regulator, the focus might shift from blocking deals to managing their ripple effects. For now, the $1 billion seed planted in 2019 continues to grow, unshackled by Britain’s antitrust reins.
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