Microsoft is reportedly being investigated by the US's Federal Trade Commission (FTC) in a newly announced, wide-ranging probe.
Initially reported by Bloomberg and corroborated by several other publications, the FTC is allegedly assessing Microsoft’s cloud and software licensing operations, cybersecurity services, and AI solutions.
Last year, the FTC received complaints about Microsoft while conducting a broader examination of the cloud computing market. The investigation apparently stems from extensive information demands and follows a year of informal discussions with Microsoft’s competitors and partners.
According to Bloomberg sources, a key focus is how Microsoft bundles productivity and security software with its Azure cloud services, specifically how Microsoft's allegedly punitive licensing terms impede customers from transferring business data from its Azure cloud service to competitor platforms.
The FTC's apparent interest in Microsoft’s cloud business intensified following several security incidents involving its products, especially given Microsoft’s role as a major software provider for US government agencies. In April, the US Cyber Safety Review Board (CSRB) contended that Microsoft should have been better equipped to prevent Chinese hackers from breaching US government emails through its Microsoft Exchange Online software during the Storm-0558 cyberattack in July 2023.
The FTC and Microsoft have both declined to comment so far.
There is a potential twist, though. Donald Trump's election as US president raises expectations that he will appoint a Republican with a more business-friendly approach, leaving the outcome of the prospective investigation uncertain.
However, it is not out of the question that the probe would continue. During Trump’s previous administration, the Department of Justice (DOJ) and the Federal Trade Commission (FTC) filed notable antitrust lawsuits against Google and Meta, signalling a tougher stance on big tech despite expectations of an enterprise-friendly outlook.
The European Commission's Investigation of Microsoft
The FTC's proposed investigation harks back to Microsoft's landmark antitrust lawsuit by the Department of Justice in the late 1990s, which centred on the company's bundling of its web browser, Internet Explorer, with its Windows operating system.
