UK regulators are investigating Microsoft’s hiring of Inflection AI staff, prompting a phase one merger probe by the Competition and Markets Authority (CMA). The investigation, which could advance to a second phase by September 11, may impact Microsoft’s AI ambitions. The CMA previously required Microsoft to restructure its $68.7 billion Activision Blizzard acquisition. Microsoft argues that hiring talent fosters competition rather than constitutes a merger and pledges full cooperation. The probe follows increased scrutiny of Big Tech’s AI ventures and recent EU antitrust charges against Microsoft for bundling its Teams app with Office 365. A potential fine of up to 10% of annual turnover is at stake.
UK Antitrust Authority Investigates Microsoft’s Recruitment of Inflection AI Talent
