By AFP
June 28, 2024
The EU concluded Microsoft's tie-up with OpenAI does not mean the US tech giant has control of the ChatGPT maker
- Copyright AFP/File
By AFP
June 28, 2024
The EU wants Shein and Temu to provide information by July 12
Charly TRIBALLEAU
The EU will examine the impact of Microsoft’s multi-billion-dollar partnership with ChatGPT developer OpenAI on competition in the fast-growing AI market, the bloc’s antitrust chief said Friday.
But the European Commission concluded after a preliminary examination that the $13 billion tie-up did not mean the US tech giant had taken control of OpenAI.
“The key question was whether Microsoft had acquired control on a long-lasting basis over OpenAI. After a thorough review… we concluded that as such, it was not the case,” said EU competition commissioner, Margrethe Vestager.
“So we are closing this chapter. But the thing is that the story is not over,” she said during a speech in Brussels.
Instead, the EU has now demanded more information from Microsoft about the agreement between the two companies, Vestager said, “to understand whether certain exclusivity clauses could have a negative effect on competition”.
She also said the EU has sought more information about Google’s arrangement with Samsung to pre-install its small version of the AI system, Gemini, on some devices made by the South Korean giant.
And Brussels wanted to understand the impact of so-called “acqui-hires”, Vestager added, which is when a company acquires another firm mainly to grab the key talent.
Microsoft earlier this year announced a deal to hire senior figures from OpenAI rival Inflection, including its boss, to head up a newly created consumer AI unit. But unlike a merger, Inflection still operates as an independent company.
This means it does not face a traditional merger probe, which would have given regulators the right to block an acquisition.
The EU’s study of Microsoft and OpenAI came after an abortive boardroom coup last year against the ChatGPT maker’s CEO Sam Altman, whom Microsoft supported and even briefly hired.
American and British regulators are also looking at the partnership.
Microsoft welcomed the conclusion of the EU’s examination.
“We appreciate the European Commission’s thorough review and its conclusion that Microsoft’s investment and partnership with OpenAI does not give Microsoft control over the company,” a Microsoft spokesperson said.
“We stand ready to respond to any additional questions the European Commission may have.”
EU questions Shein, Temu over consumer protection
The EU will examine the impact of Microsoft’s multi-billion-dollar partnership with ChatGPT developer OpenAI on competition in the fast-growing AI market, the bloc’s antitrust chief said Friday.
But the European Commission concluded after a preliminary examination that the $13 billion tie-up did not mean the US tech giant had taken control of OpenAI.
“The key question was whether Microsoft had acquired control on a long-lasting basis over OpenAI. After a thorough review… we concluded that as such, it was not the case,” said EU competition commissioner, Margrethe Vestager.
“So we are closing this chapter. But the thing is that the story is not over,” she said during a speech in Brussels.
Instead, the EU has now demanded more information from Microsoft about the agreement between the two companies, Vestager said, “to understand whether certain exclusivity clauses could have a negative effect on competition”.
She also said the EU has sought more information about Google’s arrangement with Samsung to pre-install its small version of the AI system, Gemini, on some devices made by the South Korean giant.
And Brussels wanted to understand the impact of so-called “acqui-hires”, Vestager added, which is when a company acquires another firm mainly to grab the key talent.
Microsoft earlier this year announced a deal to hire senior figures from OpenAI rival Inflection, including its boss, to head up a newly created consumer AI unit. But unlike a merger, Inflection still operates as an independent company.
This means it does not face a traditional merger probe, which would have given regulators the right to block an acquisition.
The EU’s study of Microsoft and OpenAI came after an abortive boardroom coup last year against the ChatGPT maker’s CEO Sam Altman, whom Microsoft supported and even briefly hired.
American and British regulators are also looking at the partnership.
Microsoft welcomed the conclusion of the EU’s examination.
“We appreciate the European Commission’s thorough review and its conclusion that Microsoft’s investment and partnership with OpenAI does not give Microsoft control over the company,” a Microsoft spokesperson said.
“We stand ready to respond to any additional questions the European Commission may have.”
EU questions Shein, Temu over consumer protection
By AFP
June 28, 2024
The EU wants Shein and Temu to provide information by July 12
- Copyright AFP/File
Charly TRIBALLEAU
The EU on Friday demanded wildly popular shopping platforms Shein and Temu explain what action they are taking to protect consumers, including children.
The query was made under the EU’s breakthrough law known as the Digital Services Act (DSA) that forces platforms to do more to tackle the sale of illegal and harmful goods.
The European Commission said it wants to know what action the Chinese-founded platforms have taken to make sure users can notify them about illegal products.
It also wants to know how Shein and Temu are complying with rules regarding online interfaces to avoid “dark patterns”, the practice of tricking users into making unwanted purchases or opting-in to certain settings without their knowledge.
The commission added it wants more information about how they are guaranteeing the transparency of their recommender systems — algorithms used by platforms to push more personalised content — and the ease with which sellers can be traced.
Both companies must provide the information by July 12.
Shein said it was “working to promptly address” the demand for information.
“We share the commission’s goal of ensuring that consumers in the EU can shop online with peace of mind, and we will continue working closely with the commission,” a Shein spokesperson said.
Temu said it was “cooperating fully” with the EU. “We’d also like to reiterate that we are fully committed to complying with all applicable laws and regulations in the markets where we operate,” a Temu spokesperson said.
The commission said its request for information was also based on a complaint submitted by consumer organisations.
In May, Europe’s BEUC umbrella consumer rights group filed a complaint against Temu with the European Commission, accusing the app of using “manipulative techniques”.
Both platforms have a sizeable European user base.
Shein, a Chinese-founded company which is headquartered in Singapore, has said it has around 108 million monthly active users in the 27-nation EU.
Temu only arrived in Europe last year and has said it has on average around 75 million monthly active users in the bloc.
Shein and Temu also recently joined fellow marketplaces AliExpress, Amazon and Zalando on a list of 24 “very large online platforms” facing stricter safety rules under the DSA, which have more than 45 million monthly active users in the European Union.
The EU on Friday demanded wildly popular shopping platforms Shein and Temu explain what action they are taking to protect consumers, including children.
The query was made under the EU’s breakthrough law known as the Digital Services Act (DSA) that forces platforms to do more to tackle the sale of illegal and harmful goods.
The European Commission said it wants to know what action the Chinese-founded platforms have taken to make sure users can notify them about illegal products.
It also wants to know how Shein and Temu are complying with rules regarding online interfaces to avoid “dark patterns”, the practice of tricking users into making unwanted purchases or opting-in to certain settings without their knowledge.
The commission added it wants more information about how they are guaranteeing the transparency of their recommender systems — algorithms used by platforms to push more personalised content — and the ease with which sellers can be traced.
Both companies must provide the information by July 12.
Shein said it was “working to promptly address” the demand for information.
“We share the commission’s goal of ensuring that consumers in the EU can shop online with peace of mind, and we will continue working closely with the commission,” a Shein spokesperson said.
Temu said it was “cooperating fully” with the EU. “We’d also like to reiterate that we are fully committed to complying with all applicable laws and regulations in the markets where we operate,” a Temu spokesperson said.
The commission said its request for information was also based on a complaint submitted by consumer organisations.
In May, Europe’s BEUC umbrella consumer rights group filed a complaint against Temu with the European Commission, accusing the app of using “manipulative techniques”.
Both platforms have a sizeable European user base.
Shein, a Chinese-founded company which is headquartered in Singapore, has said it has around 108 million monthly active users in the 27-nation EU.
Temu only arrived in Europe last year and has said it has on average around 75 million monthly active users in the bloc.
Shein and Temu also recently joined fellow marketplaces AliExpress, Amazon and Zalando on a list of 24 “very large online platforms” facing stricter safety rules under the DSA, which have more than 45 million monthly active users in the European Union.
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