FTC Launches Major Antitrust Investigation into Microsoft's Cloud and AI Practices

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The Federal Trade Commission (FTC) has launched a broad antitrust investigation into Microsoft's business practices, focusing on multiple segments of the technology giant's operations including cloud computing, artificial intelligence, and cybersecurity products.

According to sources familiar with the matter, the FTC has issued a detailed information request to Microsoft examining how the company bundles its various products and services. A key area of scrutiny is Microsoft's approach to combining its cloud computing offerings with office productivity and security solutions.

The investigation comes amid complaints from competitors who allege Microsoft is potentially misusing its market dominance. Specific concerns have been raised about the company's licensing terms, which some claim make it difficult for customers to transfer their data from Microsoft's Azure cloud platform to competing services.

The probe was initiated under FTC Chair Lina Khan's leadership, ahead of her expected departure in January 2024. Khan has maintained an aggressive stance toward regulating major technology companies during her tenure.

The timing of this investigation becomes particularly noteworthy given the upcoming political transition. With Donald Trump's election as president and the likelihood of new Republican leadership at the FTC, the investigation's future direction remains uncertain.

This latest regulatory action represents another chapter in the government's ongoing efforts to examine the market power of major technology companies. Microsoft has declined to comment on the investigation.

The probe's scope extends beyond cloud services to include Microsoft's growing influence in artificial intelligence, reflecting the FTC's interest in staying ahead of rapidly evolving technology sectors that could impact market competition.