Microsoft is under investigation by the Federal Trade Commission (FTC) as part of a broad antitrust probe, joining other major tech companies like Amazon, Apple, Meta, and Google in facing government scrutiny.
The investigation reportedly focuses on Microsoft’s cloud computing services, software licensing practices, cybersecurity offerings, and artificial intelligence products. According to sources familiar with the matter, the FTC has gathered information for over a year, engaging with Microsoft’s competitors and partners. A key concern is how Microsoft bundles its Azure cloud services with productivity and security software. The inquiry gained momentum following several security incidents involving Microsoft products, which raised alarms given the company’s significant role as a software provider for U.S. government agencies. Both Microsoft and the FTC declined to comment on the matter.
Earlier this year, the U.S. Cyber Safety Review Board criticized Microsoft’s security practices, calling them insufficient and in need of significant improvement. The board highlighted the company’s pivotal role in the tech ecosystem, stressing the importance of prioritizing security. Following this, CEO Satya Nadella issued a memo to employees emphasizing that security should always take precedence over other priorities.
If the FTC decides to pursue legal action, it could revive memories of Microsoft’s antitrust battle with the Department of Justice in the late 1990s. That case centered on the bundling of Microsoft’s Internet Explorer browser with its Windows operating system. However, in the last two decades, Microsoft has largely avoided the level of antitrust scrutiny faced by its Big Tech peers.
The political landscape may also influence the probe’s future. With a change in leadership at the FTC expected under the incoming administration, the agency’s priorities could shift. However, it’s possible the investigation will continue, given the bipartisan interest in regulating the power of major tech companies.
