FTC Launches Sweeping Antitrust Probe into Microsoft's Business Practices

The FTC has begun a comprehensive antitrust investigation into Microsoft's software licensing and cloud computing sectors. This includes potential market power abuse and anti-competitive practices concerning Azure cloud services, cybersecurity, and AI products. The investigation's outcome remains uncertain due to impending administrative changes.

The U.S. Federal Trade Commission (FTC) has initiated a comprehensive antitrust probe into Microsoft, focusing on its software licensing and cloud computing operations, sources revealed on Wednesday. This investigation, endorsed by FTC Chair Lina Khan, occurs as she is set to depart in January, creating uncertainty surrounding its outcome due to potential administrative shifts.

Allegations suggest that Microsoft may be leveraging its market dominance in productivity software by enforcing stringent licensing terms to deter customers from migrating data off its Azure cloud platform, as confirmed by sources this month. Additionally, the FTC is scrutinizing Microsoft's cybersecurity and artificial intelligence product practices, according to a source.

Meanwhile, Microsoft remained silent on the issue on Wednesday. However, competitors have criticized the company's alleged efforts to confine customers to its Azure cloud services. The investigation marks a critical challenge for Microsoft, which, until now, has largely avoided the intense scrutiny directed toward other Big Tech companies by U.S. antitrust regulators.

(With inputs from agencies.)