UK antitrust regulators investigate Microsoft’s recruitment of Inflection AI employees along with FTC

The UK’s antitrust watchdog, the Competition and Markets Authority (CMA), is investigating Microsoft for hiring former Inflection AI staff and licensing the startup’s tech. The initial phase one probe will be completed by September 11 to determine if a more in-depth phase two investigation is needed.

Microsoft’s Hiring Practices

The CMA is looking into whether Microsoft’s actions created a relevant merger situation under the Enterprise Act 2002, potentially impacting competition in the UK.

Microsoft’s Response and Ongoing Investigations

Microsoft believes hiring talent promotes competition and should not be considered a merger. The FTC is also investigating Microsoft’s Inflection strategy, with Microsoft recently giving up its non-voting observer seat on OpenAI’s board to avoid further antitrust scrutiny.