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The European Union is investigating whether Microsoft’s investment in OpenAI amounts to a concealed merger amid efforts to regulate the rapidly advancing generative AI (genAI) sector.

The European Commission, serving as the EU’s executive branch, said Tuesday it is starting a competition inquiry into the markets of virtual worlds and genAI; the goal is to focus on the current level of competitiveness and the role law might play in shaping these fields.

“The European Commission will carefully review all input received through the calls for contributions. Following that review, the Commission may organize a workshop in the second quarter of 2024 to bring together all different perspectives emerging from the contributions and continue this reflection,” it said in a statement.

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