Microsoft’s Acquisition of Inflection AI: A Missed Opportunity for Competition?

On October 29, 2024, the Federal Cartel Office issued an update regarding Acquisition of employees may be subject to German merger control – Microsoft/Inflection not subject to notification due to Inflection's lack of significant domestic activity. The office found that the takeover of Inflection AI, Inc.'s personnel and related agreements by Microsoft Corporation was a concentration of undertakings, but not subject to review as it fell below national thresholds for turnover and presence in Germany.