FTC Investigates Microsoft Over Potential Antitrust Violations

The Federal Trade Commission (FTC) has launched an investigation into Microsoft’s business practices, examining whether the company has violated antitrust laws across its cloud computing, artificial intelligence, and cybersecurity segments.
Sources familiar with the matter disclosed that the agency recently issued a formal request for information regarding Microsoft’s bundling of cloud services with office and security products, as well as its growing influence in AI.
The investigation comes as FTC Chair Lina Khan, known for her aggressive stance on regulating tech giants, is set to leave office within two months due to the upcoming transition to President-elect Donald Trump’s administration. Khan, 35, has emphasized proactive regulation of the tech industry, overseeing lawsuits against Amazon and Meta for anticompetitive practices.
The FTC’s scrutiny adds to an ongoing wave of regulatory actions targeting major tech firms under the Biden administration. The Justice Department has already sued Google and Apple over monopolistic practices. Microsoft, valued at over $3 trillion and known for its wide-ranging businesses such as LinkedIn and Xbox, had largely avoided recent antitrust lawsuits despite its dominant position in several markets.
This isn’t Microsoft’s first antitrust challenge. In the late 1990s, the government attempted to split the company due to its control over operating systems and web browsers. Though initially ordered, the breakup was overturned on appeal.
Recent concerns have focused on Microsoft’s cloud computing practices. Critics, including industry group NetChoice, claim Microsoft penalizes customers who use rival providers like Google and Amazon by requiring them to purchase additional licenses for its products. European Union regulators have similarly accused Microsoft of breaching antitrust rules by bundling its Teams collaboration tool with Office products like Word and Excel.
Microsoft’s AI endeavors are also under investigation. The company is the largest investor in OpenAI, the startup behind ChatGPT, and integrates AI into products like Bing. However, it faces a lawsuit from The New York Times, alleging copyright infringement by OpenAI and Microsoft.
The FTC’s inquiry comes amidst heightened scrutiny of Microsoft’s infrastructure reliability. Recent system failures, including a global Windows crash in July and Chinese hackers breaching its cloud security, have highlighted potential vulnerabilities.
Neither the FTC nor Microsoft has commented on the ongoing investigation.