Microsoft Under UK Antitrust Investigation: CMA Probes Inflection AI Partnership

Microsoft is in hot water again, facing an antitrust investigation by the UK's Competition and Markets Authority (CMA). This time, the focus is on their cozy relationship with Inflection AI. The CMA is suspicious of Microsoft's $650 million licensing fee to Inflection AI and the mass hiring of its employees, wondering if this is more of a stealthy merger than a simple partnership.

The CMA's probe isn't Microsoft's first brush with antitrust authorities. They’ve already dodged a similar bullet in the US, where the Federal Trade Commission (FTC) took a hard look at their dealings with Inflection AI. Microsoft's confident stance is that hiring top talent and licensing innovative technology should bolster competition, not stifle it. However, the CMA isn't entirely convinced and plans to dig deeper, with an initial decision expected by September.

Microsoft's response to this investigation is predictably defensive. A spokesperson reiterated the company's belief that these moves are pro-competitive and promised full cooperation with the CMA. As Microsoft navigates these regulatory challenges, it’s clear their aggressive push into AI is drawing significant scrutiny from global antitrust watchdogs .

For more details, you can read the full article on [The Verge](https://www.theverge.com/2024/7/16/24199571/microsoft-uk-cma-inflection-ai-investigation).