FTC reportedly launches antitrust investigation into Microsoft’s cloud, AI and cybersecurity practices

The U.S. Federal Commerce Fee has reportedly opened an antitrust investigation into varied features of Microsoft Corp.’s enterprise, together with the corporate’s cloud computing, software program licensing, cybersecurity and synthetic intelligence choices.

The investigation comes after FTC was reportedly making ready to launch an investigation into claims that Microsoft earlier this month. It was claimed that the FTC was investigating allegations that Microsoft was abusing its market energy by imposing punitive licensing phrases to stop prospects from transferring their knowledge from Azure to different platforms.

The now-official investigation is alleged to go additional than licensing phrases for Azure and different cloud merchandise alone. Stories counsel that alongside considerations in relation to Microsoft’s licensing circumstances, the FTC can also be investigating Microsoft’s cybersecurity enterprise and AI merchandise.

As a part of the investigation, the FTC has crafted an in depth request, reportedly tons of of pages lengthy, to drive Microsoft to show over data.

According to Bloomberg, the FTC’s scrutiny comes after a string of cybersecurity incidents that concerned Microsoft merchandise. The corporate is a prime authorities contractor, offering billions of {dollars} in software program and cloud companies to U.S. authorities businesses, together with the Protection Division.

The request was additionally signed off by the quickly to be former FTC Chair Lina Khan. Khan is about to get replaced following the election of Donald Trump because the forty seventh president of the U.S.

As famous when the FTC was first reported to be contemplating an investigation, the change of Aadministration is vital right here. Khan’s determination to pursue Microsoft proper forward of the incoming new authorities might be argued to be nothing greater than performative advantage signaling theater. The investigation runs the chance of merely being closed following Jan. 20, however that stated, it’s not clear what place the incoming Trump administration will tackle antitrust points.

Republicans have, previously, publicly expressed considerations about massive tech corporations and their practices. On the flip aspect, the incoming administration might go simpler on massive tech corporations as a part of a promise to lower regulation and different hurdles that it says stifle innovation and development.

Whichever route the investigation goes, it’s identified which firm was a key driver behind the push for an investigation and that’s Google LLC.

Google wrote to the FTC in June 2023, accusing Microsoft of anticompetitive practices. Within the letter, Google claimed that Microsoft employs software program licensing restrictions that successfully drive prospects to make use of its Azure cloud computing companies with the intention to get monetary savings.

The accusations included that Microsoft takes benefit of the dominant place of Home windows Server and Workplace to stress prospects to make use of Azure and makes use of a “complicated net” of licensing restrictions which can be designed to stop companies from diversifying their enterprise software program distributors.

Picture: SiliconANGLE/Ideogram