Microsoft Faces UK Competition Investigation Over Hiring of AI Startup’s Founder, Key Staff

FILE - Mustafa Suleyman co founder and CEO of Inflection AI speaks to journalist during the AI Safety Summit in Bletchley Park, Milton Keynes, England, on Nov. 1, 2023. The Competition and Markets Authority said Tuesday, July 16, 2024 that its review of the hirings from Inflection AI turned up “sufficient information” to open an investigation. Microsoft hired Inflection’s co-founder and CEO Mustafa Suleyman to head up its consumer artificial intelligence business, along with several top engineers and researchers. (AP Photo/Alastair Grant)
FILE - Mustafa Suleyman co founder and CEO of Inflection AI speaks to journalist during the AI Safety Summit in Bletchley Park, Milton Keynes, England, on Nov. 1, 2023. The Competition and Markets Authority said Tuesday, July 16, 2024 that its review of the hirings from Inflection AI turned up “sufficient information” to open an investigation. Microsoft hired Inflection’s co-founder and CEO Mustafa Suleyman to head up its consumer artificial intelligence business, along with several top engineers and researchers. (AP Photo/Alastair Grant)
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Microsoft Faces UK Competition Investigation Over Hiring of AI Startup’s Founder, Key Staff

FILE - Mustafa Suleyman co founder and CEO of Inflection AI speaks to journalist during the AI Safety Summit in Bletchley Park, Milton Keynes, England, on Nov. 1, 2023. The Competition and Markets Authority said Tuesday, July 16, 2024 that its review of the hirings from Inflection AI turned up “sufficient information” to open an investigation. Microsoft hired Inflection’s co-founder and CEO Mustafa Suleyman to head up its consumer artificial intelligence business, along with several top engineers and researchers. (AP Photo/Alastair Grant)
FILE - Mustafa Suleyman co founder and CEO of Inflection AI speaks to journalist during the AI Safety Summit in Bletchley Park, Milton Keynes, England, on Nov. 1, 2023. The Competition and Markets Authority said Tuesday, July 16, 2024 that its review of the hirings from Inflection AI turned up “sufficient information” to open an investigation. Microsoft hired Inflection’s co-founder and CEO Mustafa Suleyman to head up its consumer artificial intelligence business, along with several top engineers and researchers. (AP Photo/Alastair Grant)

British regulators opened a preliminary investigation on Tuesday into Microsoft's hiring of an AI startup's key staff over concerns that it could thwart competition in the booming artificial intelligence market.

The Competition and Markets Authority said its review of the hirings from Inflection AI, including its co-founder and CEO Mustafa Suleyman, turned up “sufficient information” to open an investigation.

Microsoft hired Suleyman to head up its consumer artificial intelligence business earlier this year, and brought over several top engineers and researchers. Suleyman co-founded the AI research lab DeepMind, which is now owned by Google, before setting up Inflection and is considered an influential figure in the AI world, The AP reported.

The watchdog has indicated that it was assessing whether the hirings amount to a merger that results in “a substantial lessening of competition” in the UK's AI market, in breach of the country's antitrust rules.

“We are confident that the hiring of talent promotes competition and should not be treated as a merger," Microsoft said in a statement. "We will provide the UK Competition and Markets Authority with the information it needs to complete its inquiries expeditiously.”

The British watchdog has until Sept. 11 to decide whether to give its approval or escalate the probe into an in-depth investigation. The authority has the power to reverse deals or impose fixes to address competition concerns.

Authorities on both sides of the Atlantic have become concerned about how the biggest technology companies are gobbling up the talent and products of innovative AI startups without formally acquiring them.

Three members of the US Senate wrote last week to antitrust enforcers at the Justice Department and the Federal Trade Commission, urging them to investigate Amazon's purchase of San Francisco-based Adept. The deal will result in Adept's CEO and key employees going to Amazon and giving the e-commerce giant a license to Adept’s AI systems and datasets.



New Brazil Law Restricts Use of Smartphones in Elementary and High Schools

Brazil's President Luiz Inácio Lula da Silva speaks at a ceremony for the signing of a bill that restricts the use of cellphones in schools nationwide, at the Planalto Palace, in Brasilia, Brazil, Monday, Jan. 13, 2025. (AP)
Brazil's President Luiz Inácio Lula da Silva speaks at a ceremony for the signing of a bill that restricts the use of cellphones in schools nationwide, at the Planalto Palace, in Brasilia, Brazil, Monday, Jan. 13, 2025. (AP)
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New Brazil Law Restricts Use of Smartphones in Elementary and High Schools

Brazil's President Luiz Inácio Lula da Silva speaks at a ceremony for the signing of a bill that restricts the use of cellphones in schools nationwide, at the Planalto Palace, in Brasilia, Brazil, Monday, Jan. 13, 2025. (AP)
Brazil's President Luiz Inácio Lula da Silva speaks at a ceremony for the signing of a bill that restricts the use of cellphones in schools nationwide, at the Planalto Palace, in Brasilia, Brazil, Monday, Jan. 13, 2025. (AP)

Brazil's President Luiz Inácio Lula da Silva on Monday signed a bill restricting the use of smartphones at school, following a global trend for such limitations.

The move will impact students at elementary and high schools across the South American nation starting in February. It provides a legal framework to ensure students only use such devices in cases of emergency and danger, for educational purposes, or if they have disabilities and require them.

"We cannot allow humanism to be replaced by algorithms," Lula said in a closed ceremony at the presidential palace in the capital, Brasilia, adding that the bill "acknowledges the work of every serious person in education, everyone who wants to take care of children and teenagers in this country."

In May, Fundacao Getulio Vargas, a leading think-tank and university, said Brazil had more smartphones than people, with 258 million devices for a population of 203 million Brazilians. Local market researchers said last year that Brazilians spend 9 hours and 13 minutes per day on screens, one of the world's highest figures.

Education minister Camilo Santana told journalists that children are going online at early ages, making it harder for parents to keep track of what they do, and that restricting smartphones at school will help them.

The bill had rare support across the political spectrum, both from allies of leftist Lula and his far-right foe, former President Jair Bolsonaro.

Many parents and students also approved the move. A survey released in October by Brazilian pollster Datafolha said that almost two-thirds of respondents supported banning the use of smartphones by children and teenagers at schools. More than three-quarters said those devices do more harm than good to their children.

"(Restricting cellphones) is tough, but necessary. It is useful for them to do searches for school, but to use it socially isn't good," said Ricardo Martins Ramos, 43, father of two girls and the owner of a hamburger restaurant in Rio de Janeiro. "Kids will interact more."

His 13-year-old daughter Isabela said her classmates struggled to focus during class because of their smartphones. She approved the move, but doesn't see it as enough to improve the learning environment for everyone.

"When the teacher lets you use the cellphone, it is because he wants you to do searches," she said. "There's still a lot of things that schools can't solve, such as bullying and harassment."

As of 2023, about two-thirds of Brazilian schools imposed some restriction on cellphone use, while 28% banned them entirely, according to a survey released in August by the Brazilian Internet Steering Committee.

The Brazilian states of Rio de Janeiro, Maranhao and Goias have already passed local bills to ban such devices at schools. However, authorities have struggled to enforce these laws.

Authorities in Sao Paulo, the most populous state in Brazil, are discussing whether smartphones should be banned both in public and private schools.

Gabriele Alexandra Henriques Pinheiro, 25, works at a beauty parlor and is the mother of a boy diagnosed with autism spectrum disorder. She also agrees with the restrictions, but says adults will continue to be a bad example of smartphone use for children.

"It is tough," she said. "I try to restrict the time my son watches any screens, but whenever I have a task to perform I have to use the smartphone to be able to do it all," she said.

Institutions, governments, parents and others have for years associated smartphone use by children with bullying, suicidal ideation, anxiety and loss of concentration necessary for learning. China moved last year to limit children’s use of smartphones, while France has in place a ban on smartphones in schools for kids aged six to 15.

Cellphone bans have gained traction across the United States, where eight states have passed laws or policies that ban or restrict cellphone use to try to curb student phone access and minimize distractions in classrooms.

An increasing number of parents across Europe who are concerned by evidence that smartphone use among young kids jeopardizes their safety and mental health.

A report published in September by UNESCO, the United Nations Educational, Scientific and Cultural Organization, said one in four countries has already restricted the use of such devices at schools.

Last year in a US Senate hearing, Meta CEO Mark Zuckerberg apologized to parents of children exploited, bullied or driven to self-harm via social media. He also noted Meta’s continued investments in "industrywide" efforts to protect children.