The US Federal Trade Commission has launched a comprehensive antitrust investigation into Microsoft, focusing on its cloud computing, software licensing, and AI practices. The probe's future is uncertain with the incoming Trump administration.
The US Federal Trade Commission (FTC) has initiated a broad antitrust investigation into Microsoft Corporation, scrutinizing its cloud computing, software licensing, and artificial intelligence (AI) practices. This investigation, approved by FTC Chair Lina Khan, comes at a pivotal moment as the political landscape shifts with President-elect Donald Trump's upcoming administration.
The FTC's inquiry delves into allegations that Microsoft is potentially abusing its market power by imposing restrictive licensing terms that hinder customers from transferring their data from Microsoft's Azure cloud service to competing platforms. This move has drawn criticism from competitors who argue that Microsoft's practices lock customers into its ecosystem, particularly in the cloud computing sector.
The investigation also extends to Microsoft's cybersecurity and AI products, areas where the company has rapidly expanded its influence. Microsoft's significant investment in OpenAI and the integration of AI tools into its products have positioned it as a leader in the AI space, raising concerns about its competitive practices.
This probe is part of a broader effort by US regulators to address anticompetitive behaviors among major tech companies. Microsoft, despite its size and influence, has largely avoided the intense scrutiny faced by other tech giants like Amazon, Google, and Meta Platforms. However, the FTC's current focus on Microsoft signals a shift in regulatory attention.
The outcome of the investigation remains uncertain as the Trump administration is expected to appoint a new FTC chair with potentially different regulatory priorities. This political transition could influence the direction and intensity of the probe.
Microsoft has declined to comment on the investigation, while the FTC has not provided further details. The situation continues to evolve as the FTC gathers more information from Microsoft's competitors and business partners.
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