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HomeTechnologyDOJ and FTC demand an investigation into Microsoft's OpenAI collaboration.

DOJ and FTC demand an investigation into Microsoft’s OpenAI collaboration.

Politico reported on Friday, citing three people with knowledge of the case, that the U.S. Justice Department and the Federal Trade Commission are debating which agency can investigate OpenAI on antitrust concerns, including the AI firm’s cooperation with Microsoft (MSFT.O), opens new tab.

Following its announcement last year that it will invest over $10 billion in OpenAI, Microsoft’s partnership with the company that makes ChatGPT has come under scrutiny for antitrust violations.

After Britain’s antitrust authority issued a similar warning in December, EU antitrust regulators warned earlier this month that Microsoft’s investment in OpenAI would be subject to examination under EU merger regulations.

To determine which agency can review the case, the FTC started discussions with the DOJ months ago.

According to the source, the discussions are mostly focused on Microsoft and OpenAI and are not a part of a larger conversation about which agency will look into artificial intelligence-related concerns.

When approached by Reuters, Microsoft declined to comment. A spokeswoman for the Justice Department also declined to comment.

When questioned about the Politico report, an FTC representative told Reuters that “our joint clearance process with the DOJ is seamless, and that lets both agencies effectively use their resources to protect American consumers from higher prices and unfair competition.”

Citing a copy of a demand for records, The Washington Post reported in July of last year that the FTC had begun an inquiry into whether OpenAI had broken consumer protection rules.



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