United Kingdom: Launched merger inquiry in CMA investigation into Microsoft's hiring of former employees and related arrangements with Inflection AI

On 16 July 2024, the UK Competition and Markets Authority (CMA) announced the commencement of a merger inquiry into Microsoft Corporation's hiring of certain former employees of Inflection AI, Inc. and its entry into associated arrangements with Inflection. The investigation, initiated to decide whether to proceed with a phase 2 investigation, follows the CMA's concerns regarding the potential impact of these arrangements on competition within the ML and AI development sector in the United Kingdom. The initial period for this investigation began the day following the notice, setting the deadline for the decision on a phase 2 investigation for 11 September 2024. The investigation is part of the CMA's broader assessment of competition in the markets for AI Foundation Models, particularly focusing on how partnerships among key industry players may influence market power dynamics.