Microsoft’s $19.7bn (£14.5bn) acquisition of an artificial intelligence company used by the NHS is being scrutinised by the competition regulator.
The Competition and Markets Authority (CMA) is understood to have raised questions with Microsoft and quizzed customers and rivals about its takeover of Nuance Communications.
Microsoft is yet to file with the regulator, which would have 40 working days to consider whether to launch an in-depth investigation.
The deal has been cleared by US and Australian authorities while the European Commission has also been hearing from rivals – it is expected to give the green light in the coming days.
Nuance is best known for providing the original speech recognition system behind Siri, Apple’s virtual assistant.
Its transcription software is widely used in the NHS to cut down on note taking and became more crucial during the pandemic by allowing doctors to keep protective equipment on.
Its software also powers automated systems such as bots used to answer questions about coronavirus vaccines.
Microsoft announced a $16bn deal to buy Nuance, one of its biggest deals, in April to help boost its push into healthcare. It had expected to complete the deal by the end of the year but has since said it could push into 2022.
One concern believed to have been raised by the CMA is whether buying Nuance would stop Microsoft launching its own rival product.
The tech giant has a special version of its 365 software subscription service for healthcare, which it could sell alongside Nuance’s tech. Rivals have complained about the “bundling” of multiple services, saying it makes it harder to compete.
The CMA and Microsoft both declined to comment.
