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

On 4 September 2024, the UK Competition and Markets Authority (CMA) announced the closure 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 was concerned with Inflection's foundational models and consumer chatbots, considering potential horizontal unilateral effects from loss of competition for both. While the transaction is a relevant merger situation under the control jurisdiction of the CMA, the CMA finds that it does not give rise to a realistic prospect of substantial lessening of competition through horizontal unilateral effects for either product. As a result, the CMA decided not to make a reference under s.22(1) of the Enterprise Act 2002.