FTC Opens Antitrust Probe Into Microsoft Over Cloud, AI Competition Concerns
The FTC has launched an antitrust investigation into Microsoft, focusing on its cloud computing, AI, and software bundling practices.
Published: Dec 02, 2024
Key Takeaways:
- The US Federal Trade Commission is scrutinizing Microsoft’s practices in cloud computing, software licensing, cybersecurity, and AI.
- Microsoft has faced international criticism over allegations of anti-competitive bundling.
- The investigation is seen as a final push under FTC Chair Lina Khan’s leadership to challenge Big Tech dominance.
The US Federal Trade Commission has reportedly launched an antitrust investigation into Microsoft. The Federal agency is scrutinizing Microsoft’s cloud computing, software licensing, cybersecurity, and AI businesses.
Last month, the Financial Times reported that the FTC was preparing to launch an investigation into Microsoft’s cloud computing business. The agency was planning to investigate accusations that Microsoft is abusing its market dominance by making it harder for customers to move data from Azure to rival cloud platforms.
According to a new report from Bloomberg, the federal agency has sent a detailed formal request for information, which spans hundreds of pages, after getting approval from FTC Chair Lina Khan. The focus is on how Microsoft bundles its productivity and security software with its Azure cloud.
FTC and EU scrutinize Microsoft’s bundling practices
In recent years, Microsoft has faced criticism for bundling its products in ways that competitors claim hinder fair competition. Earlier this year, the EU accused Microsoft of violating antitrust rules by pairing Microsoft Teams with Office apps like Word and Excel.
The FTC is also investigating Microsoft’s investments in its AI ventures. The company, which partners with ChatGPT creator OpenAI, has integrated AI into several products, including the Bing search engine.
The investigation is one of Lina Khan’s last major initiatives, marking a vigorous effort by the FTC under her leadership to challenge corporate consolidation in recent years. While no official announcement has been made, it is anticipated that Khan will step down as President-elect Donald Trump assumes office.
Trump’s approach to regulation is uncertain, but his administration may signal a departure from President Joe Biden’s emphasis on curbing the influence of major tech companies. During Biden’s tenure, the FTC targeted Amazon and Meta in legal actions and the Department of Justice pursued cases against Apple and Google.