Expect significant new tariffs on Chinese imports and moderate levies on goods from other nations , as President-elect Donald Trump rolls out his protectionist agenda. However, with his preference for chaotic policymaking and sudden shifts , there’s uncertainty on how soon these import taxes will actually hit. Dubbed “ Tariff Man ,” Trump aims to use tariffs both strategically and tactically . He’s mentioned taxing all Chinese goods up to 60% and potentially setting 10%-20% tariffs on imports globally , but details on these plans remain vague . Key players within Trump’s team are divided: Robert Lighthizer , a staunch tariff advocate, sees permanent duties as crucial to balance US trade , while others, like billionaires John Paulson and Scott Bessent , view tariffs as temporary leverage. Trump’s previous administration had mixed feelings, especially on national security-related trade limits , which he sometimes dismissed, favoring an “open for business” approach. High-profile busin
Microsoft's OpenAI Pact Under EU's Antitrust Lens
Microsoft Corp.’s $13 billion investment in OpenAI Inc. is under heightened scrutiny by the European Union’s antitrust watchdogs, poised to question rivals about OpenAI’s exclusive use of Microsoft’s cloud technology.
Margrethe Vestager, the EU’s antitrust chief, announced Friday that the bloc has ruled out probing the deal under merger regulations. Instead, regulators will investigate Microsoft’s exclusivity clauses with OpenAI to determine their impact on competition.
Market Reactions and Regulatory Concerns
The EU will also examine Google’s arrangement with Samsung Electronics Co. to pre-install its AI model “Gemini nano” on certain devices. Vestager noted that regulators are evaluating Big Tech’s strategy of acquiring firms through mass hiring, following the US Federal Trade Commission’s probe into Microsoft’s recruitment of Inflection staff.
“We will ensure such practices don’t bypass our merger control rules if they essentially lead to a concentration,” Vestager said.
Microsoft's Azure Under Scrutiny
Microsoft’s agreement with OpenAI designates Azure as the exclusive cloud provider for OpenAI, a clause that EU regulators are scrutinizing. Preliminary questions from the EU often lead to formal investigations, potentially resulting in behavioral changes and fines for anti-competitive practices.
“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,” Microsoft stated. “We stand ready to respond to any additional questions the EC may have.”
Regulatory Interest Sparked by OpenAI's Internal Turmoil
The EU’s antitrust arm has been reviewing the Microsoft-OpenAI partnership since January, after a scandal involving the firing and rehiring of OpenAI’s Sam Altman exposed the firms’ deep ties. Microsoft CEO Satya Nadella played a key role in Altman’s return, even offering to hire him along with other OpenAI employees.
OpenAI’s board eventually reinstated Altman, appointing a three-person interim board and adding Microsoft as a non-voting observer. This episode prompted regulators to investigate the agreement further.
The UK’s Competition and Markets Authority and the US Federal Trade Commission are also examining whether the partnership has shifted the balance of power, potentially giving one side more control.
Cloud Power Driving AI Boom
At the heart of the Microsoft-OpenAI partnership is the immense computing power needed to sustain the generative AI surge. The demand for cloud services has soared, with OpenAI becoming a significant customer of Microsoft’s cloud business.
Under EU merger rules, officials vet deals within strict timeframes, often seeking remedies for competition concerns. While rare, some deals are vetoed, and firms face penalties for misleading regulators.
Microsoft's Antitrust Challenges
Microsoft is no stranger to EU antitrust scrutiny, having fought long battles over its market dominance with Windows. Recently, the EU accused Microsoft of abusing market power by bundling its Teams video-conferencing app with other business software.
As AI continues to drive market dynamics, Microsoft’s substantial investment in OpenAI will remain under close watch from global regulators, ensuring competitive practices in the rapidly evolving tech landscape.
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