FTC launches major investigation into Microsoft’s practices
The Federal Trade Commission (FTC) is initiating a broad investigation into Microsoft, examining the tech giant’s business practices, reports a Kazinform News Agency correspondent.
On Wednesday, the FTC asked Microsoft to provide detailed documents about its cloud services, AI tools, and cybersecurity software, according to a source familiar with the investigation who requested anonymity. Neither Microsoft nor the FTC has commented on the situation.
Microsoft, known for its diverse operations, has recently emerged as a key player in artificial intelligence (AI). This rise stems from its investments in OpenAI and the development of its own AI system, Copilot, which complements its existing cloud computing, enterprise software, gaming, and device businesses.
Microsoft has dealt with antitrust issues before. Earlier in 2023, European regulators considered investigating its partnership with OpenAI to address competition concerns in the AI sector, though no formal probe occurred. Additionally, the company faced opposition from the FTC over its $69 billion acquisition of Activision Blizzard. Critics argued the merger could lead to a monopoly in video game publishing, though Microsoft denied the claims. The deal was finalized in October 2023.
The timing of the investigation is noteworthy as President-elect Donald Trump prepares to take office. Trump is expected to replace current FTC Chair Lina Khan, possibly altering the agency’s direction. His administration could also halt ongoing investigations.
Trump’s return to power raises broader questions about how his government will address antitrust issues affecting major tech companies. For instance, Google faces the possibility of being forced to sell Chrome after its search business was deemed a monopoly. Antitrust scrutiny of Apple and Amazon also continues.
Under Khan, the FTC has aggressively targeted tech giants, blocking numerous mergers and acquisitions in collaboration with the Justice Department. However, it has faced setbacks in high-profile cases. Notably, it failed to prevent Meta from acquiring virtual reality start-up “Within Unlimited” and has yet to prove that Meta’s acquisitions of Instagram and WhatsApp harmed competition.
The outcome of the FTC’s investigation into Microsoft could have significant implications for the tech industry, particularly as regulatory priorities shift under new leadership.
