The European Commission (EC) revealed a number of moves to assess competition in the markets for generative AI and so-called virtual worlds, including evaluating whether Microsoft’s investment in OpenAI is reviewable under merger regulation.

Aside from the initial look at Microsoft’s relationship, the regulator flagged it was appraising agreements made by large digital companies and generative AI players, and the knock-on impact in the overall market.

The news of its interest in deals in the sector was revealed as it launched a pair of initial consultations, one covering the generative AI market and the other looking at the level of competition related to “virtual worlds”.   

In its call for opinions on the two, it requested interested parties share their experience of competition in the segments currently, barriers to entry and the potential role of laws moving forward. The deadline for submissions is 11 March.

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It is fundamental that these new markets stay competitive, and that nothing stands in the way of businesses growing and providing the best and most innovative products

Margrethe Vestager – EVP in charge of competition policy European Commission

EC EVP in charge of competition policy Margrethe Vestager (pictured) said as the two areas were rapidly developing, it “is fundamental that these new markets stay competitive, and that nothing stands in the way of businesses growing and providing the best and most innovative products to consumers”.

“We are inviting businesses and experts to tell us about any competition issues that they may perceive in these industries, whilst also closely monitoring AI partnerships to ensure they do not unduly distort market dynamics,” she added.

The EC’s announcement of a check on whether Microsoft’s openAI investment could fall under its merger regulation comes a month after similar moves were initiated by the UK and, reportedly, the US.

While its latest moves focus on competition in the segment, the European Union is also in the process of trying to hammer-out legislation on governing the use of AI. However, its interest in the sector hasn’t come without some trepidation, with industry group DigitalEurope warning of the dangers of over-regulation in the fledgling sector.