Microsoft Faces FTC Scrutiny Amid Steady Market Climb and Windows 11 Push

Microsoft (MSFT) has demonstrated steady performance in the stock market, registering a 0.11% increase last week, a 1.55% increase over the past week, and a 13.54% rise year-to-date, reaching a market cap of $3.148 trillion. This uptrend reflects the company's robust position despite ongoing challenges, including a significant antitrust investigation by the U.S. Federal Trade Commission (FTC). The FTC is examining multiple aspects of Microsoft's operations, from its cloud computing and software licensing to its cybersecurity and artificial intelligence products.

According to insiders, the FTC has intensified its scrutiny following several cybersecurity incidents involving Microsoft's products. The company, which is a principal contractor for the U.S. government, provides extensive software and cloud services to various federal agencies, including the Department of Defense. The investigation, marked by a meticulous request for information signed by FTC chair Lina Khan, aims to explore if Microsoft's bundling practices, especially regarding its productivity and security software, are indicative of anticompetitive behavior.

As part of the investigation, the FTC is looking into Microsoft's integration of its popular office software with its cloud services, a move criticized for potentially stifling competition among other cybersecurity firms. Detractors argue that such bundling tactics make it difficult for rivals to compete, specifically citing Microsoft Teams' free inclusion with Office software like Word and Excel as a barrier to fair competition for companies like Slack and Zoom Communications.

In parallel, Microsoft is actively pushing users to upgrade from Windows 10 to Windows 11, announcing that support for Windows 10 will end on October 14, 2025. Microsoft has strongly encouraged this transition, highlighting the advantages of Windows 11, while noting the necessity for users to meet specific hardware requirements, such as having a TPM 2.0 module, to ensure a smooth upgrade.

These efforts are part of a broader strategy, with Microsoft promoting the Windows 11 24H2 version through various channels to accelerate user migration. Analysts view this push as a bid to retire Windows 10 in favor of promoting newer technologies, aligning with initiatives such as the Copilot+ PC program.

Despite these efforts, Microsoft's internal data suggest that its latest operating system has faced challenges in gaining market share; Windows 11's adoption saw a decline in November, while Windows 10's share proportionally increased. In response, Microsoft has dashed to reassure users about the benefits of upgrading, emphasizing future-proof performance and enhanced security features with Windows 11.