What is Japan's Fair Trade Commission investigating Microsoft for?

The JFTC is investigating Microsoft Japan for potential anti-competitive practices concerning its Azure cloud platform, specifically regarding restrictions on customers using competing cloud services.

Why are Japanese regulators looking into Microsoft's cloud business?

Regulators are examining if Microsoft has restricted its software from running on platforms other than Azure, potentially limiting competition in the growing cloud market.

How is this investigation related to the broader cloud market in Japan?

The probe occurs as the Japanese cloud market is expected to grow significantly due to AI development, and regulators aim to ensure a fair competitive landscape dominated by US providers.

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Microsoft Japan Probed Over Cloud Practices

25 Feb

Summary

Japanese regulators are investigating Microsoft's cloud platform.
The probe focuses on potential restrictions on competing cloud services.
This aligns with global efforts to curb US tech firms' power.

Microsoft Japan Probed Over Cloud Practices

Japanese regulators are currently investigating Microsoft's local unit over alleged anti-competitive practices related to its Azure cloud platform. The Fair Trade Commission (JFTC) initiated an on-site inspection at Microsoft Japan's Tokyo office.

The investigation is reportedly focusing on whether Microsoft has prevented customers from utilizing rival cloud services by restricting its software from operating on platforms other than Azure. This action is occurring amid intense competition among US tech giants like Amazon Web Services and Google Cloud for dominance in the Japanese market.

Japan's antitrust watchdog has been taking more assertive measures against major US technology firms, mirroring actions by regulators in other countries. Last year, the JFTC issued a similar order against Google concerning its Android software practices.

The cloud services market is poised for rapid growth, fueled by the advancement of generative AI, which relies heavily on high-performance servers. While Japan has domestic data center operators, US providers largely dominate the market.

The JFTC aims to ensure a fair competitive environment as the demand for cloud services is expected to surge. Research indicates Japan's cloud market is projected to nearly double in revenue by 2029.

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