US launches antitrust probe against Microsoft

The U.S. Federal Trade Commission (FTC) has launched a comprehensive antitrust investigation into Microsoft, focusing on its software licensing and cloud computing operations.

The probe, approved by FTC Chair Lina Khan before her expected departure in January, comes amidst uncertainty over enforcement priorities under the incoming administration of President-elect Donald Trump.

The FTC is investigating allegations that Microsoft uses restrictive licensing terms to prevent customers from transferring data from its Azure cloud service to competing platforms. The agency is also examining Microsoft's practices in cybersecurity and artificial intelligence products.

Competitors have accused the company of locking customers into its Azure platform, with groups like NetChoice criticising its licensing policies and AI integrations.

Last year, Google filed a complaint with the European Commission, claiming Microsoft charged a 400% markup for running Windows Server on rival cloud platforms and provided delayed security updates. Similar concerns have been raised by other industry players, including Amazon and Google, who compete with Microsoft in cloud computing.

Microsoft, which declined to comment, has generally avoided the heightened scrutiny faced by other Big Tech firms like Google, Apple, Meta, and Amazon.

However, the FTC has already examined Microsoft's activities in artificial intelligence and its $650 million deal with Inflection AI.

While some expect Trump’s administration to adopt a more lenient approach towards Big Tech, past actions, including lawsuits against Google and Meta, indicate that ongoing investigations may continue regardless of leadership changes.