FTC investigates Microsoft over possible antitrust Violations

The Federal Trade Commission (FTC) has reportedly launched an investigation into Microsoft’s business practices, examining its cloud computing, artificial intelligence (AI), and cybersecurity operations.

The inquiry centres on allegations that Microsoft unfairly bundles its cloud computing services with Office and security products, potentially stifling competition. The FTC is also scrutinising Microsoft’s growing influence in the AI sector, bolstered by its substantial investment in OpenAI, the creator of ChatGPT.

The investigation is part of the Biden administration’s broader push to regulate major tech companies. Recent lawsuits have targeted Amazon, Meta, and Google for alleged anticompetitive behaviour. The company, valued at over $3 trillion, had largely avoided this wave of scrutiny, despite a high-profile antitrust case in the 1990s over its Windows operating system.

Regulatory concerns have heightened over Microsoft’s cloud licensing practices. Critics, including industry group NetChoice, allege that Microsoft imposes penalties on customers who opt for rival cloud providers, requiring additional software licences. European regulators have also flagged the bundling of Microsoft Teams with Office products as a violation of EU antitrust laws.

The FTC is further investigating Microsoft’s strategic partnerships in the AI space. Its relationship with OpenAI, along with AI integrations into products like Bing, has sparked regulatory questions about potential oversight gaps. The agency has been tasked with overseeing Microsoft and OpenAI, while the Justice Department focuses on AI-related chipmakers like Nvidia.

The company’s recent $69 billion acquisition of Activision Blizzard has also drawn regulatory attention, though the FTC failed to block the deal.

The probe adds to growing tensions over Microsoft’s role in critical digital infrastructure, highlighted by recent cybersecurity incidents and operational disruptions.