The US Federal Trade Commission (FTC) has launched an antitrust investigation into Microsoft, scrutinizing its business practices across cloud computing, software licensing, and artificial intelligence.
The move comes as Microsoft continues to grow its presence in these sectors, particularly following significant investments in AI and its widely used Copilot system. The FTC's inquiry follows informal interviews with Microsoft's competitors and partners.
Now, the agency has formally requested detailed information from the company, including data on its cloud offerings and cybersecurity products. The probe seeks to evaluate potential anti-competitive practices, such as bundling popular software with cloud services, according to Financial Times.
For instance, Microsoft's integration of Teams with other software has previously sparked complaints from rivals like Slack and Zoom.
A notable focus of the investigation is Microsoft's role as a top government contractor. Recent cybersecurity issues, including incidents affecting millions of devices running Microsoft software, have raised concerns about the company's impact on economic and national security.
FTC Probe Signals Renewed Concerns Over Microsoft's Market Dominance
FTC Chair Lina Khan has emphasized the risks posed by the concentrated nature of the cloud market, warning that outages or security failures could have widespread consequences, according to CNN.
The investigation also revisits long-standing concerns about Microsoft's market dominance. Over two decades ago, the company faced antitrust actions related to bundling its Windows operating system with its browser. Now, similar concerns are resurfacing as Microsoft strengthens its grip on emerging markets like AI.
While neither Microsoft nor the FTC has commented on the current investigation, the timing coincides with an upcoming change in the White House administration. The new leadership could potentially shift the direction of antitrust enforcement, leaving the future of this probe uncertain.
Originally published on Franchise Herald.
