The European Commission is set to scrutinize Microsoft’s 49% stake in OpenAI, the maker of ChatGPT. The commission has indicated its intention to investigate whether the Redmond company’s investments in the AI firm warrant a review under the EU Merger Regulation.

In a recent document published on the E.U.’s website, the commission called for contributions regarding competition in “virtual worlds” and AI. It also mentioned sending “requests for information to several large digital players,” without specifying the recipients. The commission is also examining agreements between large digital market players and generative AI developers and providers.

Specifically, the European Commission is investigating whether Microsoft’s investment in OpenAI could be reviewable under the EU Merger Regulation. Microsoft has reportedly invested at least $13 billion in OpenAI for a 49% stake. Although this level of equity is just shy of a full merger, the commission might consider Microsoft’s recent involvement in OpenAI’s CEO changes as an indicating factor.

As reported, OpenAI’s CEO, Sam Altman, was fired on November 17, 2023, due to tensions with at least one board member. He was rehired after a brief period when the company’s CTO, Mira Murati, and Twitch cofounder Emmett Shear, took over. Amidst the turmoil, Microsoft offered Altman a leadership position.

However, the European Commission’s intention to review Microsoft’s investments in OpenAI does not necessarily imply that any regulation or legal action will ensue. This is not the first time Microsoft has encountered European merger law. The company’s acquisition of gaming giant Activision-Blizzard was delayed for almost a year due to inquiries and requests from the E.U. and U.K. governments. The takeover was eventually completed in October 2023.