Microsoft and OpenAI could face an investigation over the tech giant's $10 billion investment in the ChatGPT maker.
The European Commission is weighing up whether the partnership could be reviewed under EU merger regulations, it said in a press release Tuesday.
If the companies are found to be in breach of the rules, the commission could launch a full-scale probe.
The news comes after the UK's Competition and Markets Authority said in December that it would weigh up whether the partnership meant Microsoft held any power over the AI startup.
Margrethe Vestager, who leads competition policy at the commission, said in the press release that the watchdog is "closely monitoring AI partnerships to ensure they do not unduly distort market dynamics."
The commission is giving interested parties until March 11 to comment on how it can impact market competition.
Microsoft and OpenAI didn't immediately respond to requests for comment from Business Insider, made outside of normal working hours.
