FTC Intensifies Microsoft Antitrust Probe

The U.S. Federal Trade Commission (FTC) is significantly increasing its scrutiny of Microsoft Corp. as part of an ongoing investigation into alleged monopolistic practices in the enterprise computing market. The agency has issued civil investigative demands to competing companies, seeking detailed information on Microsoft's business and licensing strategies concerning its cloud software and artificial intelligence products, including Copilot.

The FTC's demands aim to uncover whether Microsoft makes it difficult for customers to utilize Windows, Office, and other products on competing cloud services. Particular attention is being paid to the bundling of AI, security, and identity software into core products like Windows and Office. This intensified examination echoes historical antitrust concerns, including the Justice Department's 1990s case against Microsoft for bundling Internet Explorer with Windows.

Microsoft has previously made adjustments to its licensing policies, especially for European cloud providers, and has cited technological differences for interoperability issues with rival clouds. The current investigation, initiated during the Biden administration and continued under FTC Chairman Andrew Ferguson, focuses on licensing restrictions introduced in 2019. Similar concerns have been examined by UK regulators.

The probe also delves into Microsoft's AI business, including data on training models and computing power needs. Some queries suggest the FTC is examining whether Microsoft curtailed its own AI development after investing in OpenAI. No final decisions have been made, and FTC investigations do not always lead to enforcement actions.