Microsoft’s (NASDAQ:MSFT) big investment in OpenAI might face more scrutiny from the EU’s antitrust chief due to its use of Microsoft’s cloud technology, according to Bloomberg. Despite this, shares of the tech giant were slightly up at the time of writing.
The EU’s Margrethe Vestager may ask Microsoft customers and competitors about the OpenAI deal to see if it affects competition. Microsoft says it’s ready to answer any questions and appreciates the EU’s careful review. This deal, in which Microsoft poured billions into OpenAI, was expected to avoid a formal EU investigation earlier this year.
The OpenAI-Microsoft deal is also being looked at by regulators in the U.S. and the UK. On top of this, the European Commission recently accused Microsoft of breaking antitrust rules by bundling its Teams app with Office 365 and Microsoft 365.
Microsoft is no stranger to regulator scrutiny, as its previous acquisition of Activision-Blizzard drew a lot of attention, especially from the EU. However, given that it was able to overcome that hurdle, there’s reason to believe Microsoft will be fine this time around as well.
What Is the MSFT Target Price?
Turning to Wall Street, analysts have a Strong Buy consensus rating on MSFT stock based on 34 Buys, one Hold, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 36% rally in its share price over the past year, the average MSFT price target of $500.71 per share implies 10.35% upside potential.
