Tag Archives: regulator

UK Regulator Abandons Review of Microsoft’s Partnership with OpenAI

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The UK Competition Watchdog has decided not to conduct a formal investigation into the partnership with the startups behind Microsoft’s AI chatbot, ChatGPT. The tech company, valued at 2.9TN (£2.3TN), claims it has a “material impact” on OpenAI but does not exercise control over it.

While the Competitive Markets Agency (CMA) acknowledged Microsoft’s significant financial support of OpenAI with a $13 billion investment, it concluded that Microsoft’s influence did not reach the threshold for an official investigation due to lack of control.

The CMA’s decision comes amidst concerns over the appointment of former Amazon UK boss Duggar as interim chairman. The CMA’s chief executive, Sarah Cardell, emphasized the need to maintain business trust without creating undue regulatory pressure from the UK government.


Joel Bamford, executive director of CMA’s merger, stated that as there was no change in control, the current partnership structure did not warrant review under UK’s merger regulations.

However, Bamford clarified that this decision does not imply that the partnership has been cleared of competitive concerns.

Following Sam Altman’s appointment as OpenAI’s CEO, the CMA initiated an investigation into OpenAI’s relations, noting a decrease in its reliance on Microsoft for computing power as a factor influencing their decision.

A Microsoft representative emphasized that the partnership with OpenAI supports competition, innovation, and responsible AI development. The decision to end the investigation was made after careful consideration of commercial realities.

Last year, the CMA chose not to investigate Amazon’s investment in AI companies, and similarly did not delve deeper into Microsoft’s partnerships with Mistral and Decleft.

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Microsoft recently invested $6.6 billion in OpenAI, contributing to a funding round that valued the company at $15.7 billion. OpenAI, run by a non-profit committee, has subsidiaries of for-profit entities, with Microsoft being the major supporter of these subsidiaries.

Despite concerns over Gurr’s appointment and the avoidance of negative economic impact, the CMA has focused on scrutinizing Big Tech, particularly during Gurr’s tenure. Alongside investigations into Google’s internet search dominance, the CMA is also exploring the effects of Apple and Google’s mobile platforms on consumers and businesses.

In January, Microsoft criticized the CMA’s cloud market survey, claiming it impedes tech companies from effectively competing with Google and Amazon in cloud computing services.

Source: www.theguardian.com

Competition regulator probes Apple and Google’s mobile platforms in the UK

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The UK’s competition watchdog is set to investigate the impact of Apple and Google’s mobile platforms on consumers and businesses, following criticism over the appointment of a former tech executive as its new chair.

The Competition and Markets Authority (CMA) will look into the tech giants’ mobile operating systems, app stores, and browsers to determine if specific guidelines are needed to regulate their behavior.

This inquiry comes after Doug Gurr, a former Amazon UK country manager, was appointed as the CMA chair, with the government denying any bias towards big tech companies.

The investigation will focus on how Google and Apple’s mobile platforms impact consumers, businesses, and app developers, as most smartphones in the UK come with pre-installed iOS or Android operating systems.

The CMA will assess whether Google and Apple should be classified as companies with “strategic market positions” under the new Digital Markets, Competition and Consumers Act (DMCC). If designated as such, the CMA could impose regulatory requirements or mandate changes to promote competition on their platforms.

Sara Cardel, CEO of the CMA, emphasized the importance of mobile platforms as gateways to the digital world and highlighted the potential for a more competitive ecosystem to drive innovation and growth.

The CMA aims to complete its investigation by October 22nd, in line with its focus on ensuring consistent regulations that support economic growth and competition.

Both Apple and Google have expressed readiness to cooperate with the CMA and reiterated their commitment to fostering choice and opportunity for consumers and businesses while complying with regulations.

Source: www.theguardian.com

UK Data Regulator Slams Google for ‘Irresponsible’ Ad Tracking Changes

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The UK’s data protection regulator has condemned Google for enabling advertisers to track customers’ digital “fingerprints,” expressing concerns about the difficulty of blocking online surveillance technology even for privacy-conscious users, calling it “irresponsible.”

The Information Commissioner’s Office (ICO) in the UK stated that this practice undermines consumer control and choice regarding data collection and usage. Google’s decision to introduce this method creates expectations for a privacy-focused internet, deviating from current standards.

Fingerprinting involves gathering unique signals from a device’s software or hardware to identify a user or device, similar to an advanced form of cookies.

Data watchdogs note that fingerprinting is challenging to detect and block, making consent more difficult compared to cookie notifications often encountered while browsing the web.

Google recently announced its entry into the rapidly expanding Connected TV (CTV) advertising space, emphasizing the need for brands to effectively target desired audiences while also improving customer privacy.

In a statement in 2019, Google acknowledged the lack of control users have over their fingerprint data compared to cookies, labeling this practice as user-choice infringing and wrong.

Stephen Almond, Executive Director of Regulatory Risk at the ICO, emphasized that companies must adhere to legal and transparent deployment of advertising technology, warning of potential action from the ICO if guidelines are not followed.

The ICO asserts that fingerprinting is an unfair method of online tracking which compromises user choice and control over data collection.

Google indicated it will engage in further discussions with the ICO regarding its policy change.

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A Google spokesperson mentioned that privacy-enhancing technology enables partners to succeed on emerging platforms such as CTV without compromising user privacy. They reaffirmed the commitment to providing users with the choice of personalized ads and promoting responsible data use across the industry.

Source: www.theguardian.com