FTC vs. Microsoft: Cloud, AI, and security practices under investigation

The Federal Trade Commission (FTC) has initiated a comprehensive antitrust investigation into Microsoft, scrutinizing its practices across several business sectors, including cloud computing, artificial intelligence, and cybersecurity products. Reports indicate that the investigation aims to assess whether Microsoft has violated antitrust laws through its operations.

FTC’s inquiry reflects the Biden administration’s ongoing regulatory crackdown on large tech companies, which could shift under the incoming Trump administration. The investigation comes as part of a broader strategy to address competitive practices among prominent tech firms, including Amazon, Google, and Meta, each facing similar scrutiny in recent years.

The FTC’s investigation focuses on how Microsoft bundles its cloud offerings with its office and security tools, potentially impacting competition. The agency has demanded extensive documentation from Microsoft, reportedly involving hundreds of pages of information related to its AI products, software licensing practices, and specific business operations surrounding its cloud services.

FTC’s Click-to-Cancel rule is ending the subscription trap

Bloomberg reports that FTC lawyers plan to meet with Microsoft competitors to gain further insight into the company’s market practices. Of particular interest is Microsoft’s Entra ID, a security tool that manages authentication for cloud-based logins, raising questions about the impact of its utilization on competitive neutrality.

Previously, The New York Times highlighted a significant agreement between the Justice Department and the FTC that paved the way for investigations into Microsoft, artificial intelligence developer OpenAI, and chip designer Nvidia, all of which have evaded substantial antitrust scrutiny during the Biden presidency. The FTC’s current focus on Microsoft follows allegations that the tech giant imposed restrictive licensing terms that discourage users from migrating data to rival cloud platforms.

Featured image credit: Salah Darwish/Unsplash