Microsoft plays defense while pointing fingers at Google's data collection to distract the EU regulators

Microsoft has told European antitrust regulators that Google has vast data collection capabilities and possesses AI-optimized chips, which gives the search engine company a competitive edge.

The Redmond tech giant also mentioned that tools like ChatGPT and Gemini can produce human-like content in response to prompts; however, there is a huge concern about misinformation and copyright violations.

In its report to the commission, Microsoft said:

Today, only one company – Google – is vertically integrated in a manner that provides it with strength and independence at every AI layer from chips to a thriving mobile app store. Everyone must rely on partnerships to innovate and compete.

The Redmond tech giant mentioned that Google’s investments in AI semiconductors will keep it ahead of the game for the foreseeable future.

Moreover, with the vast reserves of data sourced from its search engine and YouTube, the video platform, the company can train large language models to empower Gemini.

Microsoft wrote:

YouTube provides an unparalleled set of video content; it hosts an estimated 14 billion videos. Google has access to such content; but other AI developers do not.

The report also said with Google Assistant and Apple’s Siri, Google and Apple have the edge over the AI companies, and they are

well-positioned to evolve and leverage their respective existing voice assistants into leadership positions in generative AI. New entrants and competitors of Google and Apple will not enjoy the same advantages.

On these claims, Google also said:

“We hope the Commission’s study will shine a light on companies that don’t offer the openness of Google Cloud or have a long history of locking-in customers – and who are bringing that same approach to AI services.

Antitrust regulators in the European Union have inspected Microsoft’s investment of over $10 billion in OpenAI, which they believe could lead to market dominance and anticompetitive behavior.

In response, Microsoft is addressing these concerns about the new partnerships made between tech companies like itself and startups like OpenAI. It further explained that their motive is not to kill the competition but to foster innovation within the tech industry.

Microsoft said:

All of these startups relied on different forms of investments and partnerships that enabled them to enter and expand in the space.

Encouraging pro-competitive partnerships in the AI space is an effective way to prevent companies from becoming vertically integrated in a manner that would result in an anti-competitive advantage.

Well, Microsoft is trying to make the EU regulators believe that the investments made by the tech giant are for innovation, collaboration, and consumer welfare, but at the same time, pointed its finger toward Google as it has a trove of data as its call. Doesn’t seem fair?

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