The FTC Isn’t Done with Microsoft Just Yet
The US Federal Trade Commission (FTC) launched a new investigation into Microsoft concerning its cloud computing, software licensing, cybersecurity, and artificial intelligence (AI) products. This comes on the back of a two-year period of Microsoft closing the Activision Blizzard King (ABK) acquisition.
The FTC Investigates Microsoft Once Again
As reported by Bloomberg Law, the FTC investigation was initiated after more than a year of informal interviews with Microsoft’s competitors and business partners. The US agency sent a detailed information request to Microsoft, which included hundreds of pages of questions. A key area of concern for the FTC is Microsoft’s bundling of its popular office productivity and security software with its cloud offerings. This practice is seen as potentially anti-competitive, as it may lock customers into using Microsoft’s Azure cloud service and prevent them from switching to other platforms.
The FTC investigation will also examine Microsoft’s cybersecurity practices, especially given its role as a top government contractor providing software and cloud services to US agencies.
The FTC’s new investigation into Microsoft’s business practices sparks renewed interest more than 25 years after the government previously sued Microsoft over similar issues. Back then, the concern was over the bundling of its Windows operating system with its web browser. This past attempt to break up Microsoft was unsuccessful, but the current inquiry shows that the company’s practices are still under the microscope today.
The outcome of this investigation could be pivotal for Microsoft’s future business operations.
One Last Hurrah from Lina Khan
No doubt the investigation is one of the final actions of FTC Chair Lina Khan, who has been known for her aggressive stance against corporate consolidation. The outcome of the investigation could be influenced by the incoming administration, as President-elect Donald Trump is expected to appoint a new FTC chair with a softer approach to business regulation.
Both Microsoft and the FTC have declined to comment on the investigation.
Mahmood Ghaffar
LOGNET Editor-in-Chief. Husband, father, and gamer. Videogames run deep within my blood. I've been gaming since the humble days of the NES and never looked back.
