Microsoft is under investigation by the Federal Trade Commission (FTC) in an expansive antitrust probe, marking it as the fifth major technology company to come under such scrutiny in recent years, as reported by Bloomberg.
The FTC’s focus spans Microsoft’s cloud and software licensing business, cybersecurity services, and artificial intelligence offerings, according to sources familiar with the matter.
The inquiry builds on over a year of informal discussions with Microsoft’s competitors and partners and includes a comprehensive demand for information amounting to hundreds of pages. Central to the investigation is how Microsoft bundles productivity and security software with its Azure cloud services. Concerns about these practices gained traction after security breaches involving Microsoft’s products raised alarms, particularly given the company’s role as a key supplier of software to U.S. government agencies.
Earlier this year, the Cyber Safety Review Board criticized Microsoft’s security practices as “inadequate” and called for systemic changes. Microsoft CEO Satya Nadella responded to the criticism with a memo to employees emphasizing security as a top priority, stating, “If you’re faced with the tradeoff between security and another priority, your answer is clear: Do security.”
This investigation echoes Microsoft’s antitrust battles from the late 1990s when the Department of Justice pursued the company over its bundling of Internet Explorer with Windows. However, in recent years, Microsoft has largely avoided the antitrust scrutiny faced by other tech giants like Amazon, Apple, Meta, and Google, all of which are currently defending against government monopoly claims.
The political landscape adds an uncertain dimension to the probe. President-elect Donald Trump is set to take office in January, with plans to appoint a new FTC chair and Republican commissioner. While it remains unclear how this leadership change will affect the investigation, Trump’s previous DOJ and FTC teams filed antitrust lawsuits against Google and Meta, suggesting the possibility of continued attention on Microsoft.
Featured Image courtesy of Carlo Allegri/REUTERS
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