The US Federal Trade Commission is currently conducting an antitrust investigation into Microsoft Corp., focusing on various aspects of the company’s operations including cloud computing, software licensing, cybersecurity, and artificial intelligence products.
After a year of informal interviews with competitors and business partners, the FTC has prepared a detailed information request for Microsoft, spanning hundreds of pages and signed off by FTC Chair Lina Khan. The demand has been sent to the company for compliance.
FTC antitrust lawyers are scheduled to meet with Microsoft competitors to gather more information about the company’s business practices.
Microsoft and the FTC have both declined to comment on the matter.
The FTC’s focus on Microsoft’s cloud computing business has intensified following a series of cybersecurity incidents involving the company’s products. Microsoft is a major government contractor, providing software and cloud services to US agencies, including the Defense Department.
The information demand from the FTC is considered one of Khan’s final actions as she prepares to step down. The agency’s inquiry renews scrutiny on Microsoft’s business practices more than two decades after a previous legal battle over similar conduct.
The current probe is looking into Microsoft’s bundling of office productivity and security software with its cloud offerings. The company’s cybersecurity vulnerabilities, combined with its role as a government contractor, are seen as problematic by the FTC.
The investigation also focuses on Microsoft’s security software, Microsoft Entra ID, which helps authenticate users logging into cloud-based software. Competitors have raised concerns about Microsoft’s licensing terms and bundling practices, alleging that they impede competition.
Companies like Salesforce Inc.’s Slack and Zoom Communications Inc. have criticized Microsoft for offering its Teams video-conferencing software for free in a bundle with other popular products, claiming it creates unfair competition.
