The US Federal Trade Commission (FTC) is intensifying its investigation into Microsoft, focusing on whether the company is unlawfully monopolizing significant segments of the enterprise computing market through its cloud software and AI services, including its product Copilot. Recently, the regulator has issued information requests to several competitors, probing into Microsoft’s licensing and business practices.
In the past few weeks, the FTC has reached out to various firms that compete with Microsoft in the realms of business software and cloud computing. These requests include a series of inquiries regarding Microsoft’s licensing and business operations. Sources familiar with the matter indicated that at least half a dozen companies have received these requests, highlighting the FTC’s commitment to uncovering potential antitrust violations.
Among the questions posed by the FTC, investigators seek to determine if Microsoft is creating obstacles for customers wishing to use Windows, Office, and other products alongside competing cloud services. The regulator is also interested in understanding how Microsoft integrates artificial intelligence, security, and identity software within its Windows and Office suites. This scrutiny reflects broader concerns regarding market fairness and competition.
Microsoft has previously adjusted its practices in response to complaints from competitors and customers regarding its licensing policies. Notably, the company has eased restrictions to facilitate smaller European cloud providers in hosting Microsoft products. Additionally, Microsoft entered into an agreement with the Cloud Infrastructure Services Providers in Europe (CISPE) last year, further demonstrating its efforts to address competitive concerns.
In defense of its practices, Microsoft contends that certain products lack full interoperability with rival cloud services due to underlying technological differences. The company has also faced pressure stemming from a series of high-profile cyberattacks, prompting it to enhance security features in its core offerings.
The FTC’s investigation into Microsoft commenced in November 2024, amid growing scrutiny of the company’s market dominance. Regulators are particularly interested in whether Microsoft’s prevailing position in cloud services exceeds acceptable limits of fair competition, a determination that could have significant implications for the tech industry.
No final decisions concerning enforcement actions have been reached. Historically, FTC investigations do not invariably result in punitive measures. As of now, both Microsoft and the FTC have refrained from commenting on the ongoing investigation, leaving the tech community and stakeholders in anticipation.
With the increasing importance of cloud computing and artificial intelligence in the global economy, the outcome of this investigation could shape the competitive landscape for years to come. Stakeholders are closely monitoring developments, as any findings could influence regulatory approaches toward technology companies and the broader implications for innovation and consumer choice in the market.
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