The European Commission, the European Union’s executive branch, may launch an antitrust probe into Microsoft Corp.’s high-profile partnership with OpenAI.

Officials raised the possibility of such an investigation in an announcement published today. “The European Commission is checking whether Microsoft’s investment in OpenAI might be reviewable under the EU Merger Regulation,” the document reads. EU antitrust reviews can lead to fines and a ruling requiring the affected companies to change their business practices.

The development comes only weeks after the U.K.’s antitrust regulator, the Competition and Markets Authority, launched a similar review. The CMA is seeking to determine whether Microsoft’s investment in OpenAI qualifies as a so-called relevant merger situation. This is a situation in which two companies “cease to be distinct” or are nearing such an outcome.

The U.S. Federal Trade Commission is reportedly reviewing the Microsoft-OpenAI partnership as well. Last month, Bloomberg cited a source familiar with the matter as saying that the inquiry is in a preliminary stage.

Microsoft has reportedly invested $13 billion in OpenAI since 2019. The bulk of the capital, $10 billion, is said to have been provided through a collaboration that the companies announced last January. It’s believed OpenAI will receive a sizable portion of the sum in the form of Azure cloud computing credits.

Last year, CNBC reported that the companies signed a profit-sharing agreement as part of the $10 billion capital infusion. Microsoft is expected to receive 75% of OpenAI’s net income until it recoups the investment.

CNBC also reported that Microsoft is poised to receive a 49% stake in the artificial intelligence developer under the deal. The shares are expected to change hands after OpenAI repays the $10 billion investment. Last month, however, a Microsoft spokesperson told Reuters that the company doesn’t “own any portion” of OpenAI.

Microsoft’s investment in the AI developer was not the only reason the CMA began scrutinizing the partnership a few weeks ago. According to the regulator, a “number of developments in the governance of OpenAI” also factored into the decision to launch the inquiry.

In November, OpenAI’s board of directors ousted and then rehired Chief Executive Officer Sam Altman (pictured, left, with Microsoft CEO Satya Nadella). Shortly thereafter, the AI developer announced plans to form a new board. One of the directors will reportedly represent Microsoft as a nonvoting observer.

The EU’s newly announced evaluation of the Microsoft-OpenAI partnership is one of several antitrust initiatives the European Commission detailed today. According to the commission, a second initiative will see officials evaluate “some of the agreements that have been concluded between large digital market players and generative AI developers and providers.” Separately, the EU is seeking feedback from interested parties on competition in the generative AI and virtual world segments.

Photo: Microsoft