Microsoft is currently under investigation in the US as part of a broad antitrust inquiries.
The FTC's inquiry is examining claims that Microsoft may be using its market power in productivity software to impose restrictive licensing terms that prevent customers from transferring their data from Microsoft's Azure cloud service to competing platforms. The investigation is also looking into Microsoft's practices concerning cybersecurity and artificial intelligence (AI) products.
Microsoft has declined to comment on the investigation. Competitors, including Amazon and Google, have long criticized Microsoft's cloud practices, particularly its efforts to lock customers into Azure. The FTC previously received complaints about these practices as it reviewed the cloud computing market last year. NetChoice, a lobbying group representing online companies, including Microsoft’s competitors in cloud computing, slammed Microsoft's licensing policies and the integration of AI tools into its Office and Outlook products. The group emphasized that Microsoft's market dominance makes the consequences of its licensing decisions particularly significant.
In September, Google filed a complaint with the European Commission, alleging that Microsoft forced customers to pay a 400% markup to continue using Windows Server on rival cloud platforms while providing slower and more limited security updates.
The FTC has requested extensive information from Microsoft as part of its investigation, Bloomberg reported. The agency had previously asserted its jurisdiction over inquiries into Microsoft and OpenAI regarding AI competition, and it is also reviewing Microsoft’s $650 million deal with AI startup Inflection AI.
While Microsoft has been relatively unaffected by the U.S. antitrust crackdown on Big Tech companies—such as Meta, Apple, and Amazon—who have been accused of monopolistic practices, it now faces increased scrutiny. Google, for instance, is battling two lawsuits, including one where a judge ruled that the company unlawfully obstructed competition in the online search market.
Microsoft CEO Satya Nadella recently testified in Google's trial, accusing the company of using exclusive deals with publishers to corner content for training AI. With the incoming administration, it is unclear whether Trump will continue the regulatory push against Big Tech, though concerns about their influence on public discourse persist.
Microsoft has previously benefited from favorable policies during the Trump administration. In 2019, the Pentagon awarded Microsoft a $10 billion cloud computing contract, which had initially been expected to go to Amazon. Amazon later alleged that Trump improperly influenced the decision to steer the contract to Microsoft.
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