Microsoft faces closer scrutiny in Germany, including over AI influence

Microsoft has entered the exclusive group of tech giants subject to Germany's special abuse control regime, a designation confirmed by the Federal Cartel Office (FCO). This five-year status allows the FCO to closely monitor Microsoft's influence, particularly concerning its generative AI activities, despite no immediate decisions on specific proceedings. The FCO previously examined Microsoft's deep ties with OpenAI, finding their relationship did not require a traditional merger review. However, new proactive regulatory powers could lead to stricter oversight of Microsoft's dealings, especially its Copilot AI assistant and cloud computing partnerships.

This move follows similar designations for Amazon, Apple, Google, and Meta, aiming to prevent Big Tech from stifling competition. Unlike the EU’s Digital Markets Act (DMA), which targets specific platforms, the FCO's designation covers all of Microsoft's activities, providing broader regulatory scope. Microsoft expressed its commitment to supporting a competitive environment and collaborating with the FCO.

Source: TechCrunch