Tech giant Microsoft faces new scrutiny from the Federal Trade Commission (FTC), which has launched an investigation into whether the company has engaged in anti-competitive practices related to its various technology services. This is not the first time the company has found itself in the crosshairs of regulators, but the scope of this investigation appears to be much broader than on previous occasions.
The antitrust regulator's main points of interest include Microsoft's cloud computing operations, its use of artificial intelligence and its software licenses. The FTC is also reviewing how The company has taken advantage of government contracts to consolidate its position in the market. These practices have been the subject of complaints from competitors who believe that Microsoft uses its dominance to limit consumer choice and hinder competition.
What is the FTC investigating?
The FTC is reviewing whether Microsoft combines its cloud services with other products thereby discouraging customers from using alternative providers. Companies including Google, Slack and Zoom have raised concerns about tactics seen as anti-competitive, such as bundling Microsoft Teams alongside popular apps like Word and Excel or charging disproportionate fees for those who want to migrate their data to rival services.
In addition, research is being conducted into how Microsoft has used its relationship with the United States GovernmentThe company reportedly initially offered free security services to government agencies, tying them to its platforms in the long term through high migration costs to other providers. This has raised suspicions about possible violations of antitrust regulations.
Complaints from the competition
Among Microsoft's most vocal critics is Google Cloud, which recently filed a complaint with the European Union over Microsoft's cloud software licenses. In its view, these licenses make it difficult for rival vendors to enter the market. Platforms such as Slack have also accused Microsoft of including Teams by default in its business suites, an action they see as a a market cornering tactic.
The cloud computing market is experiencing explosive growth thanks to demand driven by artificial intelligence and cybersecurity services. In this context, Microsoft occupies a privileged place with Azure, ranking as the second largest provider after Amazon Web Services (AWS). However, Its competitors claim that this leadership has been built through questionable strategies..
Microsoft and its defense
For its part, Microsoft has historically defended its practices, arguing that its goal is to offer integrated solutions that benefit consumers. However, US regulators appear willing to investigate furtherAccording to the FTC, the decision to open a formal investigation was prompted by recent incidents, such as security flaws affecting millions of Windows devices, which raised questions about the company's control in key sectors.
In addition, the authorities emphasize that Microsoft manages billions of dollars in software and services contracts with the GovernmentThis context adds an additional level of concern about how problems related to computer security can have far-reaching repercussions.
A changing political climate
The future of this investigation could depend heavily on political changes in the United States. Current FTC Chair Lina Khan, known for her tough stance against Big Tech, will conclude her term with the arrival of the new Administration in January 2025. Although details so far are confidential, it is possible that antitrust policies could change significantly under the new political leadership.
In Europe, authorities have also tried to curb Microsoft's dominant practices. For example, The European Commission demanded modifications in Microsoft's Azure-related deals after receiving multiple complaints from rival companies in 2022. These efforts reflect growing international pressure to limit the scope of practices that can be seen as an abuse of a dominant position.
The Microsoft case highlights the tensions between regulators and big tech. While competitors insist on the need for stricter regulations, Microsoft continues to expand its operations in key markets such as cloud computing, cybersecurity and artificial intelligence. The outcome of this investigation could change the competitive landscape both in the United States and around the world.