The US Federal Trade Commission (FTC) has reportedly initiated a probe over potential anti-competitive practices into cloud computing businesses of tech giant Microsoft.
The investigation also focuses on the firm’s software licensing, cybersecurity, and artificial intelligence (AI) products, reports Bloomberg.
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According to people familiar with the matter, the FTC has issued a detailed information request to the company following a series of informal interviews with competitors and business partners.
FTC chair Lina Khan has approved the probe, which is examining accusations that Microsoft may be exploiting its market position in productivity software by enforcing restrictive licensing terms.
These terms allegedly hinder customers from transferring their data from Microsoft’s Azure cloud service to rival platforms.
The investigation has intensified following several cybersecurity incidents involving Microsoft products.
A legal team from the FTC is preparing to meet with Microsoft’s competitors next week to collect further details about the company’s business strategies, the publication reported citing two other people familiar with the matter.
Earlier in November 2024, Financial Times reported that the FTC was preparing to commence its antitrust probe in Microsoft‘s cloud business.
Among the tactics being allegedly used by Microsoft include raising subscription fees for those who leave, charging high exit fees and making its Office 365 products incompatible with rival cloud platforms.
In September 2024, Reuters reported that Google filed a complaint with the European Commission, accusing Microsoft of anti-competitive practices to lock customers into its Azure cloud platform.
In October 2024, Microsoft unveiled plans for a €4.3bn ($4.75bn) investment to expand its hyperscale cloud and AI data centre infrastructure in Italy over the next two years.
As part of the funding, the company will also provide digital skills training to more than one million Italians by the end of next year.
