The Federal Trade Commission (FTC) has launched a detailed investigation into Microsoft’s business practices, focusing on potential antitrust violations. The inquiry spans the company’s cloud computing, artificial intelligence, and cybersecurity products, marking another significant effort by regulators to curb the dominance of tech giants.
FTC targets Microsoft’s bundling practices
According to Bloomberg, the FTC has sent Microsoft a formal request for information. Regulators are particularly interested in how Microsoft integrates its cloud computing services with its Office and security products. Concerns have also arisen about the company’s growing influence in artificial intelligence through its partnership with OpenAI and the integration of AI into its services, such as Azure and Bing.
The inquiry adds to the Biden administration’s ongoing scrutiny of major tech companies. While Microsoft had largely avoided recent antitrust crackdowns compared to Amazon, Meta, and Google, its practices are now under review.
FTC Chair Lina Khan, known for her aggressive approach toward tech monopolies, leads the investigation.
Microsoft’s history with antitrust investigations dates back to the 1990s when regulators sought to break up the company over its dominance in the operating system market. Although that case ended without a breakup, the company has since diversified its business into social media, gaming, and cloud computing, making it one of the world’s most valuable companies.
The company’s bundling practices have also drawn scrutiny from European regulators. The European Union recently determined that the company violated antitrust laws by packaging its Teams collaboration tool with Office products. This mirrors concerns raised by the FTC regarding the company’s ability to limit competition by tying its software and cloud services together.
In addition, the FTC is examining Microsoft’s licensing practices for cloud software. Critics claim that the company’s approach creates barriers for competitors in the market.
Antitrust investigations in the broader tech landscape
The FTC’s investigation into Microsoft reflects a broader push by U.S. regulators to address anticompetitive practices across the tech industry. The agency has already filed lawsuits against Amazon and Meta, while the Department of Justice has pursued legal action against Google for its advertising and search dominance.
Microsoft has not yet issued a formal response to the FTC’s investigation. The company has previously stated that its practices comply with antitrust laws and promote innovation. However, this investigation could lead to legal challenges that impact its operations and growth in key markets.
