Microsoft facing new FTC antitrust probe over cloud and AI practices
Microsoft is under scrutiny from the US Federal Trade Commission (FTC) in a new antitrust investigation, with reports indicating a focus on its cloud computing, artificial intelligence (AI), and broader business practices. The inquiry marks the latest chapter in the regulatory spotlight on the tech giant.
Scope of the investigation
According to sources cited by multiple outlets, the FTC has requested extensive documentation from Microsoft, covering its Azure cloud services, AI initiatives, and security offerings. Reports from the New York Times suggest that this information request spans hundreds of pages, with a meeting between the FTC and Microsoft scheduled for next week.
The investigation is said to be focused on how Microsoft bundles Azure with other products, such as Office. Critics argue that this practice makes it prohibitively expensive for businesses to switch to rival cloud providers, as they would incur additional licensing costs. Similar concerns have been raised in past regulatory actions in the UK and European Union, where Microsoft has faced complaints about unfair competitive practices in the cloud computing market.
AI business under the microscope
Beyond cloud computing, Microsoft's growing AI footprint is reportedly part of the FTC's examination. The company has invested nearly $14 billion into OpenAI, a leading AI startup, raising questions about its partnerships and influence in the AI ecosystem. The FTC previously launched an industry-wide inquiry into collaborations between tech companies and AI startups, making Microsoft's involvement a natural focus.
International echoes
The FTC's probe mirrors ongoing investigations by the UK's Competition and Markets Authority (CMA) and European regulators. Earlier this year, the CMA began looking into antitrust issues in the cloud market, targeting both Microsoft and Amazon. Meanwhile, Microsoft’s European woes included a formal complaint about its cloud practices, which was ultimately dropped after the company struck a deal with the complainants in July. Critics, however, described the settlement as controversial and insufficient to address broader concerns.
Historical context
This latest investigation comes over two decades after Microsoft’s landmark antitrust battle with the US government, which nearly resulted in the company being broken up. While Microsoft has since worked to present a more cooperative image to regulators, its dominance in sectors like cloud computing and AI has reignited concerns.
What’s Next?
Microsoft and the FTC are expected to meet next week as part of the investigation.
