UK antitrust officials join FTC in investigation into Microsoft’s hiring of Inflection AI workers

The UK’s antitrust watchdog is investigating again. The Competition and Markets Authority () has investigated the company’s employment of former Inflection AI staff and licensing of the startup’s technology. The initial Phase One investigation will conclude by 11 September, after which the CMA will decide whether to launch a more detailed Phase Two investigation.

The agency will try to establish whether Microsoft tried to avoid antitrust scrutiny by recruiting Inflection employees and employing their technology but not buying the company outright. The agency will examine whether these moves “gave rise to an appropriate merger situation under the merger provisions of the Enterprise Act 2002” and whether this has, or is likely to have, an adverse effect on competition in the UK.

“We believe that hiring talented people is a competitive advantage and should not be considered a merger,” Microsoft said. in a statement. “We will provide the UK CMA with the information it needs to complete its investigations expeditiously.”

Microsoft’s Inflection strategy is also under scrutiny in the U.S. The Federal Trade Commission is .

Last week, Microsoft lost a nonvoting observer seat on OpenAI’s board, in what observers say was an attempt to avoid further antitrust scrutiny. Microsoft has invested in OpenAI — which also .

Meanwhile, the CMA and Microsoft are familiar foes. The antitrust agency has been scrutinizing Microsoft’s $69 billion acquisition of Activision Blizzard. The investigation was before .