FTC Launches Major Antitrust Probe Into Microsoft's Cloud and Security Practices

Microsoft has become the latest tech titan to face a major antitrust investigation by the U.S. Federal Trade Commission (FTC), joining the ranks of Amazon, Apple, Meta, and Google. Reports have surfaced detailing the scope of this inquiry, which primarily targets Microsoft's core operations in cloud computing, software licensing, network security, and artificial intelligence (AI).

The probe purportedly follows a series of informal discussions initiated over a year ago by the FTC with Microsoft's competitors and partners, from which they've amassed extensive documentation. A particular focus of this inquiry is the bundling of Microsoft's productivity and security software with its Azure cloud services.

The launch of this investigation has been speculated to arise from significant security incidents involving Microsoft’s products. As a major software supplier to U.S. government agencies, the FTC's scrutiny of Microsoft's cloud services becomes critical. Earlier this year, a government cybersecurity review recommended substantial reforms in Microsoft's security practices, a sentiment echoed by Microsoft CEO Satya Nadella in an internal memo prioritizing security.

This isn't Microsoft's first entanglement with antitrust proceedings. In the late 1990s, the company was famously sued by the U.S. Department of Justice for bundling its Internet Explorer browser with the Windows operating system. However, in recent years, Microsoft has managed to avoid similar regulatory challenges until now.

As the investigation unfolds, neither Microsoft nor the FTC has provided comments on the ongoing proceedings. If confirmed, this would mark the first intense antitrust investigation into Microsoft’s practices by the U.S. regulators in over two decades.