Washington, D.C. – Microsoft is now under investigation by the Federal Trade Commission for potential antitrust violations, marking the fifth major tech company to face such scrutiny in recent years. The FTC’s inquiry includes a deep dive into Microsoft’s cloud services, software licensing practices, cybersecurity offerings, and AI products.
The investigation comes after reports from industry insiders, indicating a demand for documents spanning hundreds of pages as part of the year-long informal discussions with Microsoft’s competitors and partners. Of particular interest is how Microsoft integrates productivity and security software with its Azure cloud platform. Concerns have been raised following security incidents impacting Microsoft’s products, especially considering its role as a key software provider to U.S. government agencies.
Earlier this year, the government’s Cyber Safety Review Board highlighted significant security flaws within Microsoft, prompting CEO Satya Nadella to emphasize the company’s commitment to prioritizing security over other initiatives. If the FTC decides to pursue legal action against Microsoft, it would mark a significant shift for the tech giant, harkening back to the company’s past antitrust battles in the 1990s related to web browser bundling with its Windows operating system.
With a Democratic majority on the FTC set to change following the upcoming presidential inauguration, the direction of the investigation could be impacted. As President-elect Donald Trump takes office, his choice for FTC chair and commissioners may influence the future of the probe. However, given recent antitrust actions by the DOJ and FTC against Google and Meta, it remains a possibility that the investigation into Microsoft will continue under the new administration.