Global: EU’s Vestager Monitors Microsoft’s Talent Acquisition for Wider Implications

European Union regulators are closely observing Microsoft’s recent hiring spree, particularly its recruitment of most of the staff from artificial intelligence startup Inflection, including its co-founders. Margrethe Vestager, the EU’s antitrust chief, stated on Wednesday that she may take action if similar actions by other companies indicate a broader trend.

Last month, Microsoft hired co-founders Mustafa Suleyman and Karen Simonyan, along with the majority of Inflection’s 70-strong team, to form a new unit called Microsoft AI. This move comes as the U.S. software giant aims to consolidate and expand its offerings in artificial intelligence for consumer products.

The decision by Microsoft drew criticism from competitors, who raised concerns that the talent and technology transfer allowed Microsoft to bypass the regulatory scrutiny typically associated with a conventional acquisition.

Vestager acknowledged that she is closely monitoring these developments. However, since it is not a merger, it does not fall under traditional merger rules. She emphasized that while they are currently observing the situation, no decisions have been made regarding any potential regulatory actions.

Microsoft chose not to comment on the matter.

Vestager also highlighted potential concerns if other companies adopt similar practices. If such actions become a trend and appear to circumvent established competition preservation measures, such as merger rules, Vestager indicated that corrective actions may be considered to ensure fair competition.

The EU’s vigilance underscores the importance of maintaining competition and preventing monopolistic practices, particularly in the rapidly evolving field of artificial intelligence.