Microsoft Antitrust Investigation: FTC Launches Large-Scale Probe Into Tech Giant

Topline

The Federal Trade Commission is launching a large-scale investigation into several facets of Microsoft’s business, according to multiple outlets, demanding information on its practices as part of the Biden administration’s last-minute regulatory crackdown on Big Tech ahead of President-elect Donald Trump’s next term.

Key Facts

The investigation will look into Microsoft’s artificial intelligence products, cybersecurity offerings, software licensing business and its cloud computing division, according to Bloomberg, which reported a demand for information the FEC sent to Microsoft is hundreds of pages long.

FTC lawyers will meet with Microsoft competitors next week for more information on the tech giant’s business practices, Bloomberg reported, citing two unnamed people familiar with the matter.

Bloomberg noted part of the probe targets business practices around Microsoft’s Entra ID, a security product that provides authentication services for cloud-based logins.

Microsoft and the FTC declined to comment.

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Key Background

The New York Times reported in June the Justice Department and the FTC agreed to a deal that paved the way for antitrust probes into Microsoft, artificial intelligence developer OpenAI and chip designer Nvidia, all of which have largely avoided the antitrust pressure the Biden administration has placed on Big Tech in the last four years. The FTC’s probe into Microsoft follows a report from the Financial Times that revealed regulators were planning to investigate accusations that Microsoft’s cloud computing business has instituted strict licensing terms to stop customers from transferring their data to competing cloud platforms. Microsoft’s investigation comes amid an antitrust enforcement push from the Biden administration targeting business practices and deals involving companies like Amazon, Google and more, capping off four years of firm antitrust enforcement that could lessen once Trump takes office. Alphabet subsidiary Google is facing a regulatory crackdown from the Justice Department, which will reportedly ask it to sell its Chrome web browser to lessen its strong hold on the browser market.

Further Reading

Biden Administration Pushes For Last-Minute Crackdown On Big Tech—Here's How Trump's Approach Could Differ (Forbes)

U.S. Regulators Are Looking Into Microsoft, Nvidia And OpenAI (Forbes)