The Bundeskartellamt examined the takeover of Inflection AI, Inc. by Microsoft Corporation to determine if it was subject to German merger control. It concluded that the operations of Inflection in Germany were minor at the time of the takeover, exempting the transaction from review.

Despite not meeting the national thresholds for review, the Bundeskartellamt considered the takeover of Inflection's employees, financing agreements, and intellectual property rights by Microsoft as a merger subject to control. This highlights the application of competition law to unconventional takeover strategies in the digital sector.

Inflection, a technology company founded in 2022 known for developing the chatbot Pi, was the subject of the acquisition by Microsoft. The Bundeskartellamt's decision came after the European Commission declined to intervene in the case, leaving the review to the national authority.

Although the transaction value exceeded 400 million euros, triggering a potential review under the transaction value threshold, the lack of substantial operations by Inflection in Germany led to the discontinuation of the Bundeskartellamt's proceedings. The focus on preserving diversity in digital markets remains a key aspect of competition enforcement.