Tag: antitrust

Microsoft Faces Antitrust Firestorm: Consumers Allege OpenAI Deal Fueled Price Hikes and Stifled Competition

A proposed class action lawsuit accuses Microsoft of violating antitrust laws through its partnership with OpenAI, alleging anticompetitive practices that inflated ChatGPT subscription prices and harmed consumers. The suit claims Microsoft leveraged its exclusive cloud agreement to control OpenAI's compute resources, thereby manipulating the market while developing its own AI products.

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Microsoft Accused of AI Supply Manipulation to Inflate ChatGPT Costs

A class-action lawsuit alleges Microsoft leveraged its Azure cloud dominance to restrict OpenAI's compute resources, artificially inflating ChatGPT prices and degrading service for users. The suit claims this anticompetitive conduct, stemming from a 2019 exclusive agreement, continued until OpenAI began sourcing compute from Google Cloud, leading to a significant price drop.

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