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The U.K.’s Competition and Markets Authority (CMA) has given the green light to Microsoft’s $13 billion partnership with OpenAI, concluding the deal does not warrant a full investigation under U.K. merger rules.
The CMA had been investigating whether Microsoft’s growing involvement with OpenAI amounted to a takeover, which could have raised competition concerns. However, after extensive analysis, the regulator announced on Wednesday that Microsoft holds “material influence” over OpenAI but does not have “de facto control.”
No change in control, says CMA
The investigation was triggered by OpenAI’s leadership shake-up in November 2023, when CEO Sam Altman was briefly ousted and later reinstated. This raised concerns about Microsoft’s influence, given its financial backing and deep integration with OpenAI’s AI models in its products.
After reviewing extensive documentation and consulting both companies, the CMA concluded that while Microsoft plays a significant role in OpenAI’s operations — especially in terms of funding, technology, and cloud computing power — it does not outright dictate the company’s policies or direction.
“Looking at the evidence in the round (including the recent changes), we have found that there has not been a change of control by Microsoft from material influence to de facto control over OpenAI,” said Joel Bamford, executive director of mergers at the CMA. “Because this change of control has not happened, the partnership in its current form does not qualify for review under the UK’s merger control regime.”
A win for Microsoft, but not a ‘clean bill of health’
Despite the CMA’s ruling, the regulator was quick to clarify that the decision does not mean Microsoft’s AI dealings are free from competition concerns. Instead, the agency emphasized the need for ongoing vigilance in monitoring the fast developing AI sector.
Bamford wrote, “The CMA’s findings on jurisdiction should not be read as the partnership being given a clean bill of health on potential competition concerns; but the UK merger control regime must of course operate within the remit set down by Parliament.”
The U.K. authority acknowledged that the prolonged nature of the review — stretching over 14 months — was due to the complex and evolving nature of the Microsoft-OpenAI relationship. As recently as January 2025, Microsoft adjusted its contractual agreements to lessen OpenAI’s reliance on its computing infrastructure, a move that likely played a role in securing the CMA’s approval.
The CMA’s clearance marks a regulatory win for Microsoft, which has been facing increasing scrutiny over its AI ambitions. In the U.S., the Federal Trade Commission (FTC) has raised concerns that Microsoft’s partnership with OpenAI could reinforce its dominance in cloud computing and give it an unfair edge in the AI race.
Regulators still watching AI deals closely
The CMA’s ruling reflects the broader regulatory debate around big tech’s growing influence in AI. The watchdog has been keeping a close eye on major AI investments, recently clearing Google’s and Amazon’s partnerships with AI startup Anthropic.
Despite the clearance, regulators worldwide remain cautious about how tech giants are shaping the future of artificial intelligence.