U.S. FTC opens antitrust investigation into Microsoft

The U.S. Federal Trade Commission (FTC) opened a broad antitrust investigation into Microsoft. It covers various parts of Microsoft’s business, from cloud computing and software licensing to cybersecurity and artificial intelligence (AI).

Per Bloomberg, the FTC crafted a detailed request for Microsoft to turn over information that was hundreds of pages long. The request comes after over a year of informal interviews with Microsoft’s competitors and business partners. Further, antitrust lawyers will meet with Microsoft’s competitors next week to gather additional information about the company’s business practices.

FTC scrutiny over Microsoft’s cloud computing business ramped up after multiple cybersecurity incidents involving the company’s products. Further, Microsoft is a major contractor for the U.S. government and provides billions of dollars in software and cloud services to U.S. agencies.

Another key focus is how Microsoft bundles popular office productivity and security software with its cloud services. Additionally, the FTC is looking at Microsoft’s practices related to Entra ID, previously known as Azure Active Directory, a security service that helps authenticate users logging into cloud-based software.

Competitors reportedly raised concerns about how Microsoft licenses and bundles software with its cloud services, saying it makes it harder for rivals to compete.

Bloomberg framed the probe as a parting shot from outgoing FTC chair Lina Khan as she steps down. U.S. President-elect Donald Trump is expected to replace Khan with pro-business FTC chair, though it remains to be seen who Trump taps to helm the commission.

Under Khan, the FTC has been a regulatory force, blocking dozens of deals and mergers. It has also gone after Big Tech with sorely needed regulation. While that’s been good for consumers, CNN notes that hasn’t sat well with business leaders or the politicians in their pockets, who are looking forward to a lighter regulatory environment under Trump. However, CNN also notes that there’s a group of Republican ‘Khanservatives’ who liked Khan’s approach, including Trump’s running mate, JD Vance.

With Khan likely on the way out, Trump’s FTC chair will likely determine how to proceed with the Microsoft investigation and other ongoing FTC antitrust work.

Source: Bloomberg